Is this trend a good trading opportunity?

Will Anglo American turn, or will it continue to march upwards beyond 1,750p?

• The chart shows September’s price action.
• Shares in a week-long uptrend from September’s 1,433p lows.
• Shares are now at 1,625p.
• Shares broken above September’s previous high of 1,576p.
• Anglo American shares are -19% from 2018 highs; +10% from 2018 lows; 5% year-to-date
• In the last week, shares rose over 10%. Will the momentum continue?

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Trading Anglo American – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Anglo American using a CFD, at the current price of 1,625p. To do this, you need £2,000.

Let’s assume Anglo American trend continues to 1,750p. Your profit would be £770, 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, at 1,625p. Anglo American falls 5% and hits your stop-loss. Your loss would be £500.

This is provided for information purposes only. It should not be taken as a recommendation.