Will Centamin turn, or will it continue to rise towards 166p?

• Breakout above 125p to trade 130p (at time of writing).
• The ‘trend is your friend’. Will it continue to 166p highs?
• Bullish inverse head and shoulders bottom reversal?
• Shares at 2019 highs; +23% from 2019 lows; +20% year-to-date
• 15 Feb: Shares rise after significant Côte d’Ivoire resource increase
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Centamin– An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 166p. You decide to buy exposure to £10,000 worth of Centamin using a CFD, at the current price of 130p. To do this, you need £2,000.

Let’s assume the Centamin trend continues to 166p (+19.4%). Your profit would be £1940, 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.