Will Centamin turn, or will it continue to rise to May ’18 highs around 166p?

• Shares +14.1% since late January.
• 15 Feb: Miner’s drilling programme in Africa resulted in a resource increase.
• Shares broken out above 124p highs resistance.
• Now trading 126p (at the time of writing).
• Will the positive momentum continue towards 166p?
• Shares -1.2% from 2019 highs; +15.9% from 2019 lows; +15.9% year-to-date.
• 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 126p. To do this, you need £2,000.

Let’s assume the Centamin trend continues to May ’18 highs around 166p (+31.7%). Your profit would be £3170, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Centamin falls 7% and hits your stop-loss. Your loss would be £700.

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