Will Antofagasta fall back, or will it rise again to 902p?

• The Antofagasta range has developed since September.
• Bounced off 719p support zone 2 times, most recently this week.
• Now trading 796p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -33.0% from 2018 highs; +10.0% from 2018 lows; -20.8% year-to-date
• 24 Oct: RBC says Buy Antofagasta to gain long-term copper exposure
• 24 Oct: Bernstein welcomes strong performance
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Antofagasta – An Example

Let’s say you like the Antofagasta range, you think it’s heading back towards 902p again. You decide to buy exposure to £10,000 worth of Antofagasta using a CFD, at the current price of 796p. To do this, you need £2,000.

Let’s assume Antofagasta rises back to 902p (+13.3%). Your profit would be £1330, 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. Antofagasta 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.