Is this trend a good trading opportunity?

Will Centamin turn, or will it continue to move in the direction of 123p?

• The chart shows price action since mid-July.
• Currently trading at 103.5p (as of the time of writing).
• Centamin shares are -38% from 2018 highs; +22.6% from 2018 lows; -34.6% year-to-date.
• Shares benefiting from positive from sector read-across thanks to Barrick/Randgold M&A
• Latest results (2 Aug) saw H1 profits rise thanks to higher realised gold prices.
• Shares in a 10-day uptrend (+9.9% in the last week). Will the momentum continue?

Click to enlarge

Trading Centamin – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Centamin using a CFD, at the current price of 103.5p. To do this, you need £2,000.

Let’s assume Centamin trend continues to 123p July highs (+19.4%). Your profit would be £1,940, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% below the current price. Centamin falls 10% and hits your stop-loss. Your loss would be £1,000.

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