Is this an opportunity to take a position ahead of the results?

Glencore reports results on Friday (26 Oct)

• The chart shows the price movement last time Glencore reported: H1 Results, 8 Aug.
• Shares opened 9.3p lower (-2.9%), rebounded to +1.1p (+0.4%, high of the day), then fell as low as -11.3p (-3.5%).
• The shares closed +0.3p (+0.1%) for a daily range of 12.5p or 3.8%.
• According to brokers at UBS (8 Aug), results were downbeat, but offered scope for future buybacks.
• Shares -25.5% from 2018 highs; +9.2% from 2018 lows; -23.2% year-to-date.
• Recent share price range: Sept lows 285p; Sept highs 341p. Currently 299p (at time of writing).
• Glencore publishes a Q3 Production Report on Friday (26 Oct).
• Will we see another big move?
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Glencore – An Example

Let’s say you think that Glencore results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Glencore using CFDs, at the current price of 299p. To do this, you need £2,000.

For the purpose of this example, let’s assume Glencore reports strong results and the shares rise 9%. Your profit would be £900, from your initial investment of £2,000.

Conversely, let’s assume you open the position, and place a stop-loss 4% below the current price. Glencore results miss, it falls 4% and hits your stop-loss. Your loss would be £400.

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