Will Antofagasta turn, or will it continue down towards 727p?

• Breakdown below 799p to trade 790p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 727p?
• Shares -23.4% from 2019 highs; +8.1% from 2019 lows; +0.4% year-to-date.
• 23 May: Goldman sees end to rising iron ore prices, according to the FT
• 23 May: Copper prices in decline
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Antofagasta – An Example

Let’s say the breakdown appeals to you, you think it’s likely to continue to 727p . You decide to sell exposure to £10,000 worth of Antofagasta using a CFD, at the current price 790p (at time of writing). To do this, you need £2,000.

Let’s assume the Antofagasta trend continues downwards to 727p (-7.9%). Your profit would be £790, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Antofagasta breaks higher, rising 3% and it hits your stop-loss. Your loss would be £300.

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