Is this trend a good trading opportunity?

Will Polymetal turn, or will it continue to rise to 798p March highs?

• The chart shows the Polymetal price action over the past month.
• Shares in a month-long uptrend from 600p October lows; now at 728p.
• Recently Polymetal announced it expects to beat FY production guidance, supporting the uptrend.
• Shares -23.13% from 2018 highs; +25.7% 2018 lows; -20.88% year-to-date.
• In the last 2 weeks, the shares have risen close to 20%. Will this momentum continue?

Click to enlarge

Trading Polymetal – 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 Polymetal using a CFD, at the current price of 728p. To do this, you need £2,000.

Let’s assume Polymetal trend continues to 798p March highs (+9.6%). Your profit would be £960, 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. Polymetal rises 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.