Will Sophos turn, or will it continue to rise to November highs of 498p?

• The chart shows the Sophos price action since mid-October.
• Shares in a 10-week uptrend from 308p late November lows; now at 389p.
• Shares -42.4% from 2018 highs; +38.3% from 2018 lows; +2.9% year-to-date.
• Shares +13.7% from end-Dec lows. Will this upward momentum continue?
• 8 Jan: Sophos acquires Avid Secure to expand protection for public cloud environments
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Sophos – 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 Sophos using a CFD, at the current price of 389p. To do this, you need £2,000.

Let’s assume Sophos trend continues to November highs of 498p (+28%). Your profit would be £2800, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Sophos falls 5% and hits your stop-loss. Your loss would be £500.

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