A range trading opportunity for you?

Will BHP Billiton break support, or will it rise again back to 1755p?

• Shares broken back into Jul/Aug range.
• Bounced off 1593p zone 10 times in Jul/Aug. Now trading 1611p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -11.4% from 2018 highs; +18.5% from 2018 lows; +5.8% year-to-date
• Brokers at Macquarie ( 18 Sept)  said “the earnings upgrade cycle has resumed for the big diversified miners, buoyed by continued strength in bulk commodity prices”.

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Trading BHP Billiton – An Example

Let’s say you like the range, you think it’s heading back towards 1755p again. You decide to buy exposure to £10,000 worth of BHP Billiton using a CFD, at the current price of 1611p. To do this, you need £2,000.

Let’s assume BHP Billiton recovers back to 1755p. Your profit would be £893, 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, at 1562p. BHP Billiton 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.