Will Pennon break resistance, or will it fall back to 674p?

• Falling range channel since last July.
• Fallen from resistance 4 times. Now 755p (at time of writing)
• Will the pattern repeat itself, shares testing prior 674p lows?
• Shares -7.7% from 2018 highs; +30.2% from 2018 lows; +8.8% year-to-date
• 18 Feb: Upbeat sentiment on trade optimism denting interest in defensive utilities.
• 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 674p again. You decide to sell exposure to £10,000 worth of Pennon using a CFD, at the current price of 755p. To do this, you need £2,000.

Let’s assume Pennon falls back to 674p (-10.7%). Your profit would be £1070, 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.