Will Renishaw break lower, or will it rise back to 4370p highs again?

• Renishaw shares are trading in 3637-4370p range since mid-October.
• Bounced off support zone 3 times, most recently yesterday.
• Now trading 3760p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -34.31% from 2018 highs; +5.8% from 2018 lows; -28% year-to-date
• 26 July: Renishaw FY18 pretax profit+33% on record revenues
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Renishaw – An Example

Let’s say you like the range, you think it’s heading back towards 4370p again. You decide to buy exposure to £10,000 worth of Renishaw using a CFD, at the current price of 3760p. To do this, you need £2,000.

Let’s assume Renishaw rise back to 4370p (+16.2%). Your profit would be £1620, 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. Renishaw 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.