Will Renishaw turn, or will it continue to rise beyond 4151p?

• The chart shows Renishaw price action over the last 3 weeks.
• Shares in a 1-week uptrend from 3750p lows; now at 4151p.
• Renishaw makes precision measurement and process control equipment.
• 18 Oct: Company reported revenue +8% YoY and confidence in future growth.
• Shares -29.9% from 2018 highs; +12.8% from 2018 lows; -20.3% year-to-date
• In the last  week, the shares have risen almost 11%. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Renishaw – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Renishaw using a CFD, at the current price of 4151p. To do this, you need £2,000.

Let’s assume Renishaw trend continues to December highs of 4482p (+8.0%). Your profit would be £800, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Renishaw falls 3% and hits your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.