Is this trend a good trading opportunity?

Will Ferrexpo turn, or will it continue to rise beyond 228p?

• The chart shows Ferrexpo price action over the last 3 weeks .
• Shares in a month-long uptrend from September’s 138p lows; now at 215p.
• Shares broken above July highs of 203p.
• Shares -32 from 2018 highs; +58.6% from 2018 lows; -26.6% year-to-date
• In the last 4 weeks, the shares have risen close to 50%. Will this momentum continue?

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Trading Ferrexpo – 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 Ferrexpo using a CFD, at the current price of 215p. To do this, you need £2,000.

Let’s assume Ferrexpo  trend continues to May highs of 245p (+14%). Your profit would be £1,400, 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. Ferrexpo 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.