United Utilities
Is this trend a good trading opportunity?
Will United Utilities turn, or will it maintain momentum towards 879p?
- Shares +6.6% from recent lows; Now trading 838p (at the time of writing).
- Will the positive momentum continue towards 879p March highs?
- Shares -4.6% from 2019 highs; +16.5% from 2019 lows; +14% year-to-date.
- 23 May: £484m pension surplus at 31 Mar; Deficit eliminated in April
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading United Utilities – 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 United Utilities using a CFD, at the current price of 838p. To do this, you need £2,000.
Let’s assume United Utilities trend continues to 879p (+4.8%). Your profit would be £480, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% below the current price. United Utilities falls 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.