Is this breakout a good trade for you?

Will BHP Billiton turn, or will it continue to break upwards beyond 1755p?

• The chart shows the last 3 month’s price action.
• It has recently broken above the key 1593p level.
• The ‘trend is your friend’. Will it continue?
• The Miners have bounced back from recent lows, having been hurt by fears of a US-China trade war.
• The CEO said (17 Sept) that while he is short-term cautious, he remains long-term positive

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Trading BHP Billiton – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of BHP Billiton using a CFD, at the current price of 1613p. To do this, you need £2,000.

Let’s assume BHP Billiton’s trend continues to 1755p. Your profit would be £880, 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 Billiton’s trend breaks down, 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.