Will Fresnillo break support, or will it rise back to 996p?

• 772-996p range since September, bounced off floor, breakout
• Now trades 839p (at time of writing)
• Will the pattern repeat itself, testing previous 996p ceiling?
• Shares -18.6% from 2019 highs; +8.2% from 2019 lows; -2.7% year-to-date.
• Precious metals higher after dovish Fed update pushed USD lower
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Fresnillo – An Example

Let’s say you like the range, you think it’s heading back towards 996p again. You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price of 839p. To do this, you need £2,000.

Let’s assume Fresnillo rises to 996p (+18.7%). Your profit would be £1870, 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 falls 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.