Will Centamin turn, or will it continue to rise to May high of 166p?

• The chart shows the Centamin price action since late November.
• Shares in a monthlong uptrend from 96.9p December lows; now at 121p.
• Shares trade at 2019 highs; +7% from 2019 lows; +11.1% year-to-date.
• Centamin is an Egyptian gold miner.
• Precious metals miners are benefiting from recent US-China trade truce.
• In the last month, the shares have risen over 20%. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Centamin – 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 Centamin using a CFD, at the current price of 121p. To do this, you need £2,000.

Let’s assume Centamin trend continues to July high of 166p (+37.2%). Your profit would be £3720, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Centamin falls 8% and hits your stop-loss. Your loss would be £800.

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