Fresnillo
Is this trend a good trading opportunity?
Will Fresnillo turn, or will it continue to rise to Feb highs around 1027p?
- Shares +13% in 3 weeks
- Miner’s shares helped by higher silver price.
- Now trading 870p (at the time of writing).
- Will the positive momentum continue towards 1027p?
- Shares -15.4% from 2019 highs; +12.5% from 2019 lows; +1.2% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading Fresnillo – 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 Fresnillo using a CFD, at the current price of 870p. To do this, you need £2,000.
Let’s assume the Fresnillo trend continues to Feb highs around 1027p (+18%). Your profit would be £1800, 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. Fresnillo 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.