Will Croda break support, or will it rise again back to 5194p?

• 4729-5194p range; rising channel since October  
• Now 4924p (at time of writing)
• Will the pattern repeat itself, rising back to 5194p Feb highs?
• Shares -5.3% from 2019 highs; +7.7% from 2019 lows; +5% year-to-date
• 25 Feb: Numis says Croda’s international growth drivers outshine sector
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

Click to enlarge

Trading Croda – An Example

Let’s say you like the range, you think it’s heading back towards 5194p again. You decide to buy exposure to £10,000 worth of Croda using a CFD, at the current price of 4924p. To do this, you need £2,000.

Let’s assume Croda recovers back to 5194p Feb highs (+5.4%). Your profit would be £540, 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. Croda 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.