Will Centamin continue falling, or will it rise again back to 136p last week’s highs?

• Centamin shares as low as -17% today.
• 25 Feb: The gold miner reported disappointing results amidst falling gold production.
• 25 Feb: Next year’s gold production is expected to grow once again.
• Now trades 111p (at time of writing).
• Shares -16.2% from 2019 highs; +1.7% from 2019 lows; +6.7% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Centamin – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 136p. You decide to buy exposure to £10,000 worth of Centamin using a CFD, at the current price of 111p. To do this, you need £2,000.

Let’s assume Centamin recovers back to last week’s highs of 136p (+22.5%). Your profit would be £2250, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Centamin falls 6% and hits your stop-loss. Your loss would be £600.

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