Is this trend a good trading opportunity?

Will Antofagasta turn, or will it continue to march upwards beyond 1,012p?

• The chart shows last two months of price action.
• Shares in a 10-day uptrend from September’s 725.3p lows.
• Shares are now at 849.8p.
• Antofagasta shares are -28.5% from 2018 highs; +15% from 2018 lows; 15% year-to-date
• Weaker GBP, hurt by Brexit uncertainty, is making metals prices cheaper and help mining stocks like Antofagasta
• Measured Chinese reaction to new US tariffs is also helping China-sensitive Miners.
• In the last week, shares rose over 12%. Will the momentum continue?

Click to enlarge

Trading Antofagasta – 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 Antofagasta using a CFD, at the current price of 849.8p. To do this, you need £2,000.

Let’s assume Antofagasta’s trend continues to 1,012p August highs (+19%). Your profit would be £1,900, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% below the current price. Antofagasta 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.