Is this breakout a good trade for you?

Will Glencore turn, or will it continue to break upwards beyond 340p?

• The chart shows the last 4 months of price action for Glencore.
• The shares have broken above a resistance line at 325p.
• The ‘trend is your friend’. Will it continue?
• Shares made bullish reversal from 14-month lows
• Shares -18.1% from 2018 highs; +20.1% from 2018 lows; -12.7% year-to-date
• Morgan Stanley (25 Sept) say Glencore has healthy share buyback potential after doubling its current $1bn programme to $2bn.

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Trading Glencore – 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 Glencore using a CFD, at the current price of 340p. To do this, you need £2,000.

Let’s assume the Glencore trend continues to May highs of 400p (+17.6%). Your profit would be £1760, 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. Glencore 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.