Will Smith & Nephew turn, or will it continue to rise beyond new record highs of 1600p?

• The chart shows the Smith & Nephew price action since late October.
• Shares in a 7-week uptrend from 1243p late October lows; now at 1515p.
• Shares -3.4% from 2018 highs; +27.5% from 2018 lows; +17.7% year-to-date.
• Latest results (1 Nov) were positive, with Q3 revenue +3% and strong growth in the US and emerging markets.
• Shares +10% in the past 5 weeks. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Smith & Nephew – 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 Smith & Nephew using a CFD, at the current price of 1515p. To do this, you need £2,000.

Let’s assume Smith & Nephew trend continues to new record highs of 1600p (+5.6%). Your profit would be £560, 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. Smith & Nephew rises 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.