BHP
Is this breakout a good trade for you?
Will BHP turn, or will it continue to rise towards 2014 highs of 2097p?
- Breakout above 1800p; Now trading 1939p (at time of writing).
- Could they recover to 2014 highs of 2097p?
- Shares -0.6% from 2019 highs; +23% from 2019 lows; +14% year-to-date
- Miners trade higher on US-China trade optimism.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Click to enlarge
Trading BHP – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 2097p. You decide to buy exposure to £10,000 worth of BHP using a CFD, at the current price of 1851p. To do this, you need £2,000.
Let’s assume the BHP trend continues to highs of 2097p (+13.3%). Your profit would be £1330, 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. BHP 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.