Will Ultra Electronic turn, or will it continue to rise beyond September highs of 1661p?

• The chart shows the Ultra Electronic price action in mdi-September.
• Shares in a weeklong uptrend from 1405p lows; now at 1533p.
• Shares -13.56% from 2018 highs; +27.4% from 2018 lows; +13.8% year-to-date.
• Defense contractor shares rising following mid-term elections in the US on the expectations of improved defense spending under Republicans.
• In the past week, the shares have risen over 6%. Will this momentum continue?

Click to enlarge

Trading Ultra Electronic – 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 Ultra Electronic using a CFD, at the current price of 1533p. To do this, you need £2,000.

Let’s assume Ultra Electronic trend continues to 1661p (+8.3%). Your profit would be £830, 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. Ultra Electronic 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.