Is it irrelevant, or will the Upgrade make the Glencore share price more attractive?

• Day by Day upgrades to Buy with a target price of 409p.
• Consensus: 22 Buys, 7 Holds, 1 Sell; Avg target: 363p (Source: Bloomberg).
• Current share price 328p (at time of writing).
• Will the shares turn back, or will they rally back to recent 405p highs?
• Shares -0.4% from 2019 highs; +22.4% from 2019 lows; +12.7% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Glencore – An Example

Let’s say you think that Glencore shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Glencore using a CFD, at the current price of 328p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Glencore share price rises to recent highs at 405p (+23.4%). Your profit would be £2340 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. Glencore shares fall 5% and hit your stop-loss. Your loss would be £500.

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