Will Antofagasta fall back, or will it rise again to 877p?

• The Antofagasta range has developed since August.
• Bounced off 725p support zone 4 times, most recently this week.
• Now trading 753p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -36.9% from 2018 highs; +3.7% from 2018 lows; -25.0% year-to-date
• 15 Nov:  RBC says ANTO is attractive long term prospect
• 15 Nov: Approves $1.3bn Los Pelambres expansion, adding 60KT copper production
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Antofagasta – An Example

Let’s say you like the Antofagasta range, you think it’s heading back towards 877p again. You decide to buy exposure to £10,000 worth of Antofagasta using a CFD, at the current price of 753p. To do this, you need £2,000.

Let’s assume Antofagasta rises back to 877p (+16.4%). Your profit would be £1640, 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.