Will Centamin turn, or will it continue to rise beyond 122p?

• The chart shows the last 8 months’ price action for Centamin
• The shares have broken above a resistance line at 122p to trade 124.1p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares rise back to May 166p highs?
• Shares -27.4% from 2018 highs; +44.1% from 2018 lows; +14.0% year-to-date.
• 27 Dec: Centamin sees Sukari Gold Mine 2018 Production 2% below forecasts
• Centamin issues a Q4 Production and guidance update next week:
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Centamin– 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 Centamin using a CFD, at the current price of 124.1p. To do this, you need £2,000.

Let’s assume the Centamin trend continues upwards to 166p (+33.8%). Your profit would be £3380, 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. Centamin 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.