Will IMI break lower, or will it rise back to 1038p October highs again?

• IMI trades a channel range since mid-October 
• Bounced from support trendline 3 times, most recently today.
• Now trading 939p (at time of writing)
• Will the pattern repeat itself, testing previous highs at 1037p?
• Shares -36.7% from 2018 highs; +1.6% from 2018 lows; -29.8% year-to-date
• 8 Nov: Jefferies says IMI’s Q3 update shows momentum in key markets
• 8 Nov: IMI Forecasts FY Results in line with market expectations
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading IMI – An Example

Let’s say you like the range, you think it’s heading back towards 1037p again. You decide to Buy exposure to £10,000 worth of IMI using a CFD, at the current price of 274p. To do this, you need £2,000.

Let’s assume IMI rises back to 1037p (+10.4%). Your profit would be £1040, 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. IMI 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.