Will Fresnillo break higher, or will it fall to 738p lows again?

• The Fresnillo falling range has developed since September.
• Shares fallen back from resistance ceiling 3 times.
• Now trading 878p (at time of writing).
• Will the pattern repeat itself, testing previous lows?
• Shares -38.6% from 2018 highs; +21.6% from 2018 lows; +2.0% year-to-date
• 9 Jan: Appoints new COO
• 27 Nov: UBS says too early to tell impact of new Mexico mining laws; Fresnillo looks good long term
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Fresnillo – An Example

Let’s say you like the Fresnillo range, you think it’s heading back towards 738p again. You decide to sell exposure to £10,000 worth of Fresnillo using a CFD, at the current price of 878p. To do this, you need £2,000.

Let’s assume Fresnillo falls back to 738p (-15.9%). Your profit would be £1590, 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. Fresnillo rises 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.