Will Glencore break lower, or will it rise back to 341p highs again?

• Glencore shares are trading in a 287-341p range since September.
• Bounced off support zone twice, most recently yesterday.
• Now trading 297p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -30.1% from 2018 highs; +2.5% from 2018 lows; -23.8% year-to-date
• 5 Nov: Credit Suisse says Gelencore cements its role as Coal-price maker
• 2 Nov: Barrons.com: How electric vehicles should give a jolt to copper miners
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Glencore – An Example

Let’s say you like the range, you think it’s heading back towards 341p again. You decide to buy exposure to £10,000 worth of Glencore using a CFD, at the current price of 297p. To do this, you need £2,000.

Let’s assume Glencore rise back to 1857p (+14.8%). Your profit would be £1480, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Glencore falls 3% and hits your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.