Will Centamin turn, or will it continue to rise to July high of 124p?

• The chart shows the Centamin price action since late November.
• Shares in a 10-day uptrend from 97p recent lows; now at 109.5p.
• Shares -36.3% from 2018 highs; +26.45% from 2018 lows; -30.8% year-to-date.
• Centamin is an Egyptian gold miner.
• Precious metals miners are benefiting from recent US-China trade truce.
• In the last week, the shares have risen over 9%. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Centamin – 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 Centamin using a CFD, at the current price of 109.5p. To do this, you need £2,000.

Let’s assume Centamin trend continues to July high of 124p (+13.2%). Your profit would be £1320, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Centamin falls 5% and hits your stop-loss. Your loss would be £500.

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