SIG
Is this trend a good trading opportunity?
Will SIG turn, or will it continue to rise to 146p May 2018 highs?
- Shares +35% since mid-Dec.
- Broken above September highs around 131p.
- 8 Mar: Davy says SIG can expect a sizeable improvement in 2019 trading profit
- Now trading 137p (at the time of writing).
- Will the positive momentum continue to 146p May 2018 highs?
- Shares trade at 2019 highs; +30.5% from 2019 lows; +25.64% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading SIG – 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 SIG using a CFD, at the current price of 137p. To do this, you need £2,000.
Let’s assume the SIG trend continues to 146p May 2018 highs (+6.5%). Your profit would be £650, 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. SIG 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.