Will Fresnillo turn, or will it continue to rise to May ’18 highs around 1361p?

• Shares +11.4% in the past week, +37.5% from Nov ’18 lows.
• 30 Jan: Miner shares aided by US-China trade talks optimism and weaker USD.
• Now trading 1003p (at the time of writing).
• Will the positive momentum continue towards 1361p?
• Shares -2.5% from 2019 highs; +14.7% from 2019 lows; +17.2% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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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 1003p. To do this, you need £2,000.

Let’s assume the Fresnillo  trend continues to May highs of 1361p (+35.6%). Your profit would be £3560, 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.