Will Evraz break lower, or will it rise to 584p again?

• The Evraz trading range has developed since mid-September.
• Shares bounced from support zone 4 times, most recently last week.
• Now trading 479p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Evraz is a Russia and North America focused steelmaker.
• Metals & mining shares could benefit from the recent progress in US-China trade talks.
• Shares -18.5% from 2018 highs; +45.3% from 2018 lows; -40.85% year-to-date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Evraz – An Example

Let’s say you like the Evraz range, you think it’s heading back towards 584p again. You decide to buy exposure to £10,000 worth of Evraz using a CFD, at the current price of 479p. To do this, you need £2,000.

Let’s assume Redrow rises back to 584p (+21.9%). Your profit would be £2190, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Evraz falls 7% and hits your stop-loss. Your loss would be £700.

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