Interactive Investor

Esure trade ticks all the boxes

24th May 2016 13:50

Alistair Strang from Trends and Targets

This opinion can't be ignored, but unfortunately we've absolutely nothing to suggest the next movement at Esure will happen this week. It's just that our software says "it's gonna go" so we've placed a demo trade in the hope the four days remaining on our Interactive Investor demo trading account actually catch it.

The issue with Esure comes from its historical "glass ceiling" since 2014, at 279p. The share is now tending to trade above and, while timeframe logics rarely work, every box has now been ticked telling us this wants to get to 288p next with secondary a very probable 297p. Stop is just below 276p and our 'buy' is set to trigger at 283.7p.

The spread is currently a little odd, at 1.4p, so when we take this into consideration our order looks like this:

'buy' - 283.7p

'sell' - 288p

'stop' - 275p

While the stop is a bit wide for such an immediate risk/reward play, we've opted to ignore the spread, due to the ruling attraction at 297p suggesting the next movement will outperform. But we're not holding out for 297p, 'cos we're wimps.

Sharp-eyed folks will also notice that 288p roughly equates with the highs of 2014.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

For the next couple of weeks, we are highlighting a "near-term potential trade" or, as we call it - an oddball. Shares being monitored are all FTSE 350 members, as we're looking for logical movements. Interactive Investor, kindly, is featuring these reports on their website and then we're also publishing them at this link.

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