Is this trend a good trading opportunity?

Will Randgold Resources turn, or will it continue to rise to 2018 high of 7,439p?

• The chart shows the Randgold Resources price action since early September.
• Shares in a 6-week uptrend from 4,607p lows; now at 6,410p.
• Shares -15.7% from 2018 highs; +36.7% from 2018 lows; -13.5% year-to-date.
• Strong momentum has been helped by gold prices rebounding +6.3% from this year’s lows.
• In the last 5 weeks, the shares have risen over 36.7%. 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 6,410p. To do this, you need £2,000.

Let’s assume Randgold Resources trend continues to 2018 high of 7,439p (+16%). Your profit would be £1,600, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Randgold Resources 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.