Is this trend a good trading opportunity?

Will Rentokil turn, or will it continue to rise beyond 335p?

• The chart shows the Rentokil price action over the last week and a half.
• Shares in a 2-week uptrend from 310p September lows; now at 333p.
• Shares -7.9% from 2018 highs; +27.6% from 2018 lows; +4.4% year-to-date
• In the last 2 weeks, the shares have risen over 7%. Will this momentum continue?
• Rentokil recently bought MITIE’s pest control unit (1 Oct)

Click to enlarge

Trading Rentokil – 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 Rentokil using a CFD, at the current price of 333p. To do this, you need £2,000.

Let’s assume Rentokil trend continues to June 355p highs (+6.6%). Your profit would be £660, 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. Rentokil 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.