Will Weir Group break higher, or will it fall to 1232p lows again?

• The Weir Group falling range has developed since late May.
• Shares fallen back from resistance ceiling 4 times; Now trading 1396p (at time of writing).
• Will the pattern repeat itself, testing previous lows?
• Shares -4.7% from 2019 highs; +12.5% from 2019 lows; +7.4% year-to-date
• Weir Group manufactures oil & gas equipment and has been struggling from falling oil prices.
• 6 Nov: £25m expceptional charge noted in Q3 results overshadows order growth.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Weir Group – An Example

Let’s say you like the Weir Group range, you think it’s heading back towards 1232p again. You decide to sell exposure to £10,000 worth of Weir using a CFD, at the current price of 1396p. To do this, you need £2,000.

Let’s assume Weir Group falls back to 1232p lows (-11.7%). Your profit would be £1170, 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. Weir Group rises 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.