Will Meggitt break resistance, or will it fall back to 455p?

• 455-569p falling range, trading off the top of the range
• Now trades 563p (at time of writing)
• Will the pattern repeat itself, testing previous 455p Jan lows?
• Shares trade at 2019 highs; +24% from 2019 lows; +19.4% year to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Meggitt – An Example

Let’s say you like the range, you think it’s heading back towards 455p again. You decide to sell exposure to £10,000 worth of Meggitt using a CFD, at the current price of 563p. To do this, you need £2,000.

Let’s assume Meggitt fall back to 455p (-19.2%). Your profit would be £1920, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Meggitt rises 4% and hits your stop-loss. Your loss would be £400.

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