Will Fresnillo break lower, or will it rise to 937p again?

• The Fresnillo falling range has developed since mid-September.
• Shares bounced back from support 3 times, most recently yesterday.
• Now trading 780p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -46.7% from 2018 highs; +5.45% from 2018 lows; -45.5% year-to-date
• 26 Nov: Brokers at RBC Capital Markets say Fresnillo is well-placed to avoid Mexico legal hitches.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal, CMC Markets

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Trading Fresnillo – An Example

Let’s say you like the Fresnillo range, you think it’s heading back towards 937p again. You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price of 780p. To do this, you need £2,000.

Let’s assume Fresnillo rises back to 937p (+20.1%). Your profit would be £2010, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Fresnillo falls 9% and hits your stop-loss. Your loss would be £900.

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