Will Pennon break resistance, or will it fall back to 677p?

• Falling range channel since July.
• Fallen from resistance 4 times. Now 750p (at time of writing)
• Will the pattern repeat itself, shares testing prior 680p lows?
• Shares -6.4% from 2018 highs; +32.0% from 2018 lows; +8.1% year-to-date
• 27 Nov: H1 pretax profit +2.9%, maintains full year expectations
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Pennon – An Example

Let’s say you like the Pennon range, you think it’s heading back down to 677p again. You decide to sell exposure to £10,000 worth of Pennon using a CFD, at the current price of 750p. To do this, you need £2,000.

Let’s assume Pennon falls back to 677p (-9.7%). Your profit would be £970, 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. Pennon rises 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.