Will Fresnillo break support, or will it rise back to 1027p?

• 707-1027p widening range since October, bounced off floor
• Now trades 753p (at time of writing)
• Will the pattern repeat itself, testing previous 1027p ceiling?
• Shares -26.8% from 2019 highs; +5.6% from 2019 lows; -12.5% year-to-date.
• Safehavens like Gold and their Miners in favour as risk appetite sours
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Fresnillo – An Example

Let’s say you like the range, you think it’s heading back towards 1027p again. You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price of 753p. To do this, you need £2,000.

Let’s assume Fresnillo rises to 1027p (+36%). Your profit would be £3600, 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.