Will Renishaw break support, or will it rise back to 4600p range ceiling?

• 4015-4600p rising range since early Nov.
• Now trades 4242p (at time of writing)
• Will the pattern repeat itself, rising back to 4600p range ceiling?
• Shares -10.4% from 2019 highs; +13.0% from 2019 lows; flat year to date
• 31 Jan: Precision measurement company said FY revenue will beat last year.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Renishaw – An Example

Let’s say you like the range, you think it’s heading back towards 4600p. You decide to buy exposure to £10,000 worth of Renishaw using a CFD, at the current price of 4242p. To do this, you need £2,000.

Let’s assume Renishaw rises to 4600p range ceiling (+8.4%). Your profit would be £840, 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. Renishaw 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.