Will Antofagasta fall back, or will it rise again to 873.5p?

• The Antofagasta range has developed since August.
• Bounced off rising support zone 5 times, most recently this week.
• Now trading 752.2p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -37.0% from 2018 highs; +3.5% from 2018 lows; -4.2% year-to-date.
• Copper prices have bounced 2.5% from 18-month lows
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Antofagasta – An Example

Let’s say you like the Antofagasta range, you think it’s heading back towards 873.5p again. You decide to buy exposure to £10,000 worth of Antofagasta using a CFD, at the current price of 752.2p. To do this, you need £2,000.

Let’s assume Antofagasta rises back to 873.5p (+16.1%). Your profit would be £1610, 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.