Will Smith & Nephew break resistance, or will it fall back to 1460p?

• 1460-1541p narrowing range since Dec.; Now trades 1538p (at time of writing)
• Will the pattern repeat itself, testing the floor at 1460p?
• Shares -0.6% from 2019 highs; +11.2% from 2019 lows; +5.1% year-to-date.
• 2 May: Shore Capital says S&N needs to make acquisitions count
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Smith & Nephew – An Example

Let’s say you like the range, you think it’s heading back towards 1460p again. You decide to sell exposure to £10,000 worth of Smith & Nephew using a CFD, at the current price of 1538p. To do this, you need £2,000.

Let’s assume Smith & Nephew falls to 1460p (-5%). Your profit would be £500, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Smith & Nephew rises 2% and hits your stop-loss. Your loss would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.