Will Fresnillo turn, or will it continue to rise towards 1027p (+14%)?

• Double breakout above 850 and 880p to trade 898p  (at time of writing).
• The ‘trend is your friend’. Will it continue down towards 1027p (+14%)?
• Shares -12.6% from 2019 highs; +26.1% from 2019 lows; +4.5% year-to-date.
• Safehavens and Miners in favour amid weak USD and geopolitical tensions
• 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 to 1027p . You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price 898p (at time of writing). To do this, you need £2,000.

Let’s assume the Fresnillo trend continues up towards 1027p (+14%). Your profit would be £1400, 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 lower, 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.