Centamin
Is this breakout a good trade for you?
Will Centamin turn, or will it continue to rise towards 136p (+22)%?
- Double breakout above 104p and 109p to trade 111p (at time of writing).
- The ‘trend is your friend’. Will it continue to 136p (+22)%?
- Shares -22.3% from 2019 highs; +17.5% from 2019 lows; +11.9% year-to-date
- Safehavens like Gold and their Miners in favour as gold prices rise
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Centamin– An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 136p. You decide to buy exposure to £10,000 worth of Centamin using a CFD, at the current price of 111p. To do this, you need £2,000.
Let’s assume the Centamin trend continues to 136p (+22%). Your profit would be £2200, 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. Centamin breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.