Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make the Centamin share price more attractive?

• The chart shows the Centamin share price movements over the last 2 months.
• Berenberg upgrades Centamin to Buy with a target of 115p
• Consensus summary: 9 Buys, 7 Holds, 0 Sell; Average target: 142p (Source: Bloomberg).
• Current share price 89.9p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards recent highs of 109p?
• Shares -46.2% from 2018 highs; +6.8% from 2018 lows; -43.2% year-to date

Click to enlarge

Trading Centamin – An Example

Let’s say you think that Centamin shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Centamin using a CFD, at the current price of 89.9p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Centamin share price rises to 109p (+21.2%). Your profit would be £2120 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Centamin shares continue their downtrend, they fall 4% and hit your stop-loss. Your loss would be £400.

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