Will Centamin continue falling, or will it recover to 98p?

• Centamin shares -35% from Feb highs.
• 25 Feb: Gold miner’s profit fell on lower production.
• Bounced off 87.9 recent lows support.
• Now trades 89.2p (at time of writing).
• Shares -23.6% from 2019 highs; +1.9% from 2019 lows; +17.9% 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 98p. You decide to buy exposure to £10,000 worth of Centamin using a CFD, at the current price of 89.2p. To do this, you need £2,000.

Let’s assume Centamin recovers back to 98p (+9.8%). Your profit would be £980, 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. Centamin 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.