Is this trend a good trading opportunity?

Will Glencore turn, or will it continue to gain momentum toward 409p June highs?

• The chart shows price action in September.
• Currently trading at 339p (as of the time of writing).
• Glencore shares are -20.8% from 2018 highs; +16% from 2018 lows; +12.8% year-to-date.
• The company doubling the scope of its share buyback programme to $2bn extended strong 2-week momentum.
• According to analysts at Morgan Stanley (25 Sep), the company has plenty of room to extend the buyback.
• Share buybacks create a “forced buyer” effect, helping the shares gain momentum.
• Shares in a 2-week uptrend (+16.8% in the last 2 weeks). Will the momentum continue?

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Trading Glencore – 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 Glencore using a CFD, at the current price of 339p. To do this, you need £2,000.

Let’s assume Glencore trend continues to 409p June highs (+20.6%). Your profit would be £2,060, 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. Glencore 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.