Will Fresnillo turn, or will it continue to fall towards 632p?

• Breakdown below 738p to trade 716p  (at time of writing).
• The ‘trend is your friend’. Will it continue down towards 632p?
• Shares -30.3% from 2019 highs; +0.3% from 2019 lows; -16.7% year-to-date.
• 11 Apr: Fresnillo Q1 production hit by same old issues says UBS
• 11 Apr: Fresnillo gets off to slow start in 2019 says RBC
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Fresnillo – An Example

Let’s say the breakdown appeals to you, you think it’s likely to continue to 632p . You decide to sell exposure to £10,000 worth of Fresnillo using a CFD, at the current price 716p (at time of writing). To do this, you need £2,000.

Let’s assume the Fresnillo trend continues down towards 632p (-11%). Your profit would be £1100, 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. Fresnillo breaks higher, rising 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.