Will Ferrexpo turn, or will it continue to break upwards beyond 188p?

• The chart shows the last 2-months price action for Ferrexpo.
• The shares have broken above a resistance line at 197p to trade 200p
• The ‘trend is your friend’. Will it continue?
• Ferrexpo is engaged in mining, processing and selling of iron ore pellets to the steel industry.
• Shares -38.4% from 2018 highs; +43.5% from 2018 lows; -31.8% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Ferrexpo – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Ferrexpo using a CFD, at the current price of 200p. To do this, you need £2,000.

Let’s assume Ferrexpo’s trend continues to November highs of 234p (+17%). Your profit would be £1700, 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. Ferrexpo’ strend breaks down, falling 5% and it hits your stop-loss. Your loss would be £500.

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