Is this breakout a good trade for you?

Will Evraz turn, or will it continue making fresh record highs above 585p?

• The chart shows the last 3 month’s price action for Evraz
• The shares have broken above a resistance line at 572p to trade 583p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares make more record highs above 585p?
• Shares -0.7% from 2018 highs; +76.7% from 2018 lows; +71.4% year-to-date.
• 14 Sept: Miners get a boost from Chinese economic data
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Evraz – 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 Evraz using a CFD, at the current price of 583p. To do this, you need £2,000.

Let’s assume the Evraz trend continues upwards to 650p (+11.5%). Your profit would be £1150, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Evraz breaks down, falling 4% and it hits your stop-loss. Your loss would be £400.

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