Will Anglo American turn, or will it continue to rise to Sept ’12 highs around 2086p?

• Shares +29% from late November lows, +10% in the past week.
• Broken above 2018 highs of 1948p on Thurs, 31 Jan.
• 24 Jan: Citi says miner’s 2018 profit should be higher after Q4 production beat expectations.
• Now trading 1970p (at the time of writing).
• Will the positive momentum continue towards Sept ’12 highs around 2086p?
• Shares -1% from 2019 highs; +16.5% from 2019 lows; +12.7% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Anglo American – 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 Anglo American using a CFD, at the current price of 1970p. To do this, you need £2,000.

Let’s assume the Anglo American trend continues to Sept ’12 highs around 2086p (+5.8%). Your profit would be £580, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Anglo American falls 3% and hits your stop-loss. Your loss would be £300.

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