Will Fresnillo turn, or will it continue to rise towards 1027p highs?

• Breakout above 851p; successfully re-tested for support
• Now trading 875p (at time of writing).
• Could they recover to prior highs of 1027p?
• Shares -40% from 2019 highs; +13.3% from 2019 lows; +1.8% year-to-date
• Precious metals higher amid USD weakness and market uncertainty
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Fresnillo – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 1027p. You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price of 875p. To do this, you need £2,000.

Let’s assume the Fresnillo trend continues to highs of 1027p (+17.3%). Your profit would be £1730, 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. Fresnillo 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.