Will BHP Biliton turn, or will it continue to rise to Dec highs of 1804p?

• Breakout above 1709p to trade 1731p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 1804p?
• Shares -4.9% from 2018 highs; +27.1% from 2018 lows; +4.7% year-to-date.
• 31 Jan: BHP CEO says committed to learn from dam tragedies
• 21 Jan: BHP raises full year copper production guidance
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading BHP Biliton – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 1804p . You decide to buy exposure to £10,000 worth of BHP using a CFD, at the current price 1731p (at time of writing). To do this, you need £2,000.

Let’s assume the BHP trend continues upwards to 1804p June highs (+4.3%). Your profit would be £430, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. BHP breaks lower, falling 2% and it hits your stop-loss. Your loss would be £200.

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