Will Fresnillo break support, or will it rise back to 996p?

• 769-996p range since September, trading off the floor
• Now trades 822p (at time of writing)
• Will the pattern repeat itself, testing previous 996p ceiling?
• Shares -20% from 2019 highs; +6.3% from 2019 lows; -4.5% year to date
• Markets weak on growth concerns. Could safehaven Miner Fresnillo benefit?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Fresnillo – An Example

Let’s say you like the range, you think it’s heading back towards 996p again. You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price of 822p. To do this, you need £2,000.

Let’s assume Fresnillo rises to 996p (+21.1%). Your profit would be £2110, 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.