Will Fresnillo break support, or will it rise back to 1000p?

• 784-1044p rising channel since November; +15% from recent lows
• Breakout above 880p, to trade 888p (at time of writing)
• Will the pattern repeat itself, rising back to recent highs of 1000p?
• Shares -13.5% from 2019 highs; +15% from 2019 lows; +3.4% year-to-date.
• Demand for safehaven miners into; Gold & Silver prices off recent lows
• 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 1000p again. You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price of 888p. To do this, you need £2,000.

Let’s assume Fresnillo rises to 1000p (+12.6%). Your profit would be £1260, 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.