Will Meggitt break support or will it rise back to 540p highs?

• Falling range since February; Rising support since Apr 2018
• Bounced 3 times; Now 507p (at time of writing)
• Will the pattern repeat itself, the shares rising to 540p highs?
• Shares -10.8% from 2019 highs; +11.3% from 2019 lows; -7.8% year-to-date
• 15 May: Confident to deliver on 2021 targets
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Meggitt – An Example

Let’s say you like the range, you think it’s heading back towards 540p again. You decide to buy exposure to £10,000 worth of Meggitt using a CFD, at the current price of 507p. To do this, you need £2,000.

Let’s assume Meggitt recovers to 540p (+6.5%). Your profit would be £650, 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. Meggitt 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.