Will Antofagasta continue falling, or will it recover to 985p recent highs?

• Antofagasta shares -6.8% from yesterday’s highs.
• UK Index Miners struggle after a fall in iron ore prices.
• Shares already bounced +1% from recent rising support zone.
• Now trades 926p (at time of writing).
• Shares -5.5% from 2019 highs; +28% from 2019 lows; +19.9% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Antofagasta – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 985p recent highs. You decide to buy exposure to £10,000 worth of Evraz using a CFD, at the current price of 926p. To do this, you need £2,000.

Let’s assume Antofagasta recovers back to 985p recent highs (+6.3%). Your profit would be £630, 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. Antofagasta 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.