A trading opportunity for you?

Will Fresnillo continue falling, or will it rise again back to 1,173p?

• The price has fallen over 46% from 2018 highs.
• It has been as high as 1,364p in May. It is now at 775p.
• Fresnillo shares are now testing key resistance-turned-support level last seen in September 2015
• Recent trade confrontation between US and China hurt Mining shares
• US-Mexico trade war over NAFTA pact contributed to downtrend

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Trading Fresnillo – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards July level of 1,119p again. You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price of 775p. To do this, you need £2000.

Let’s assume Fresnillo recovers back to 1,364p. Your profit would be £4,438, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price, at 736p. Fresnillo 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.