Will Anglo American turn, or will it continue to march upwards beyond October high of 1786p?

• The chart shows the Anglo American price action since early December.
• Shares in a 2-week uptrend from 1542p recent lows; now at 1718.6p.
• Shares -13% from 2018 highs; +18.2% from 2018 lows; +11% year-to-date.
• 11 Dec: Miner upgraded its 2018 production guidance by 2% ahead of previous guidance
• In the last 2 weeks, the shares have risen over 9%. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

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 1718.6p. To do this, you need £2,000.

Let’s assume Anglo American trend continues to October high of 1786p (+4%). Your profit would be £400, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Anglo American falls 2% and hits your stop-loss. Your loss would be £200.

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