BHP
Is this breakout a good trade for you?
Will BHP turn, or will it continue to rise towards highs of 2237p (+11.8%)?
- Breakout above 1953p; Highest since Aug 2014
- Now trading 2000p (at time of writing).
- Could they recover to highs of 2237p (+11.8%)?
- Shares -0.3% from 2019 highs; +28.7% from 2019 lows; +21.1% year-to-date
- Mining shares advance on metal-price surge, amid supply fears
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading BHP – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 2237p. You decide to buy exposure to £10,000 worth of BHP using a CFD, at the current price of 2000p. To do this, you need £2,000.
Let’s assume the BHP trend continues to highs of 2237p (+11.8%). Your profit would be £1180, 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. BHP breaks lower, falling 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.