Will Fresnillo break lower, or will it rise to 915p again?

• The Fresnillo falling range has developed since late August.
• Shares bounced back from support 3 times.
• Now trading 813p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -44.3% from 2018 highs; +10.3% from 2018 lows; -43.1% year-to-date
• 27 Nov: UBS says too early to tell impact of new Mexico mining laws; Fresnillo looks good long term
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Fresnillo – An Example

Let’s say you like the Fresnillo range, you think it’s heading back towards 915p again. You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price of 813p. To do this, you need £2,000.

Let’s assume Fresnillo rises back to 915p (+12.5%). Your profit would be £1250, 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. Fresnillo 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.