Is this trend a good trading opportunity?

Will BHP Billiton turn, or will it continue to march upwards beyond 1,766p?

• The chart shows price action since early August.
• Shares in a 10-day uptrend, currently trading at 1,660p (as of the time of writing).
• BHP Billiton shares are -10.3% from 2018 highs; +20% from 2018 lows; -10.3% year-to-date.
• Measured Chinese response to US trade tariffs is helping UK Index Miners.
• Shares in strong positive momentum, +9.2% in the last week.  Will the momentum continue?

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Trading BHP Billiton – 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 Billiton using a CFD, at the current price of 1,660p. To do this, you need £2,000.

Let’s assume BHP Billiton trend continues to 1,766p January highs (+6.3%). Your profit would be £630, 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. BHP Billiton 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.