Does this Upgrade present an opportunity for you?

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

• The chart shows the Hochschild Mining share price since August.
• J.P. Morgan upgrades Hochschild Mining to Neutral.
• Consensus summary: 2 Buys, 5 Holds, 0 Sell; Average target: 198p (Source: Bloomberg).
• Current share price 173p (at time of writing).
• In its latest production report, Hochschild Mining raised its FY gold production guidance to 520K ounces, citing a strong production performance across all of its mines. (Source: DowJones)
• Will the shares turn back, or will the upgrade push the shares back towards August highs of 185p?
• Shares -37.35% from 2018 highs; +14% from 2018 lows; +34.3% year-to date

Click to enlarge

Trading Hochschild Mining – An Example

Let’s say you think that Hochschild Mining shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Hochschild Mining using a CFD, at the current price of 173p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Hochschild Mining share price rises to 185p (+5.7%). Your profit would be £570 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. Hochschild Mining shares continue their downtrend, they fall 3% and hit your stop-loss. Your loss would be £300.

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