Is this trend a good trading opportunity?

Will Randgold Resources turn, or will it continue to rise to May high of 6,120p?

• The chart shows the Randgold Resources price action over the past month.
• Shares in a monthlong uptrend from 4,607p lows; now at 5,900p.
• Shares -23.6% from 2018 highs; +23.9% from 2018 lows; -20.4% year-to-date
• Strong momentum has been helped by gold prices rebounding +5.2% from this year’s lows
• In the last 4 weeks, the shares have risen over 26%. Will this momentum continue?

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Trading Randgold Resources – 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 Randgold Resources using a CFD, at the current price of 5,900p. To do this, you need £2,000.

Let’s assume Randgold Resources trend continues to May’s 6,120 highs (+3.7%). Your profit would be £370, 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. Randgold Resources 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.