Fresnillo
Is this trend a good trading opportunity?
Will Fresnillo turn, or will it continue to rise to Feb highs of 1027p (+15.6%)?
- Shares +25% from May lows; breakout
- Now trading 888p (at the time of writing).
- Will the positive momentum continue towards 1027p (+15.6%)?
- Shares -13.8% from 2019 highs; +24.4% from 2019 lows; +3.1% year-to-date.
- Safehavens like Gold doing well amid weak USD and geopolitical tensions
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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 888p. To do this, you need £2,000.
Let’s assume the Fresnillo trend continues to highs of 1027p (+15.6%). Your profit would be £1560, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Fresnillo falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.