Will Antofagasta break higher, or will it fall again to 727p?

• The Antofagasta range has developed since August/September.
• Fallen from resistance zone 4 times, most recently today
• Now trading 821p (at time of writing).
• Will the pattern repeat itself, testing previous lows?
• Shares -28.6% from 2018 highs; +17.2% from 2018 lows; +4.9% year-to-date.
• 11 Dec: Peel Hunt cuts Antofagasta to Add from Buy
• China Trade this morning showed exports falling growth contracting for the first time in 2 years
• 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 727p again. You decide to sell exposure to £10,000 worth of Antofagasta using a CFD, at the current price of 821p. To do this, you need £2,000.

Let’s assume Antofagasta fall back to 727p (-11.5%). Your profit would be £1150, 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 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.