Is this breakout a good trade for you?

Will Polymetal turn, or will it continue to rise beyond 664p?

• The chart shows the last 6 months’ price action for Polymetal
• The shares have broken above resistance lines at 638p and 650p to trade 664p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares rise back to April 741p highs?
• Shares -32.6% from 2018 highs; +10.2% from 2018 lows; -27.9% year-to-date.
• 10 Oct: Polymetal upgrades Prognoz mineral resource estimate
• 2 Oct: Polymetal performances pushes Jefferies’ hopes higher
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Polymetal– 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 Polymetal using a CFD, at the current price of 664p. To do this, you need £2,000.

Let’s assume the Polymetal trend continues upwards to 741p (+11.6%). Your profit would be £1160, 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. Polymetal 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.