Is this breakout a good trade for you?

Will Ferrexpo turn, or will it continue to break upwards beyond 190p?

• The chart shows the last 6 weeks of days price action for Ferrexpo.
• On Friday the shares broke above a resistance line at 178.5p.
• The ‘trend is your friend’. Will it continue?
• Shares have rebounded in-line with Mining Sector, after August sell-off
• Engaged in Mining, Processing and Selling of iron ore pellets to the steel industry.

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Trading Ferrexpo – 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 Ferrexpo using a CFD, at the current price of 188p. To do this, you need £2,000.

Let’s assume Ferrexpo’s trend continues to August highs of 203p (+8%). Your profit would be £800, 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. Ferrexpo’ strend breaks down, 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.