Will Fresnillo turn, or will it continue to rise to October high of 988p?

• The chart shows the Fresnillo price action since late October.
• Shares in a weeklong uptrend from 805p November lows; now at 930p.
• Shares broken above previous November highs around 917p.
• Shares -37.4% from 2018 highs; +21% from 2018 lows; -35% year-to-date.
• Fresnillo is a Mexico-focused silver miner.
• Precious metals miners are benefiting from recent market volatility.
• In the last week, the shares have risen over 12%. Will this momentum continue?

Click to enlarge

Trading Fresnillo – 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 Fresnillo using a CFD, at the current price of 930p. To do this, you need £2,000.

Let’s assume Fresnillo trend continues to October high of 988p (+6.2%). Your profit would be £620, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Fresnillo falls 3% and hits your stop-loss. Your loss would be £300.

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