BHP
Is this trend a good trading opportunity?
Will BHP turn, or will it continue to rise towards Summer 2014 highs of 2100p? (+6%)
- Shares +13% from recent lows; Breakout
- Now 1981p (at the time of writing).
- Will the positive momentum take them to Summer 2014 highs of 2100p (+6%)?
- Shares -0.1% from 2019 highs; +27.4% from 2019 lows; +20% year-to-date.
- 20 Jun: Mining shares advance on metal-price surge
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading BHP – 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 BHP using a CFD, at the current price of 1981p. To do this, you need £2,000.
Let’s assume the BHP trend continues to Summer 2014 highs of 210p (+6%). Your profit would be £600, from your initial investment of £2000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. BHP 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.