Glencore
A range trading opportunity for you?
Will Glencore break lower, or will it rise back again to 333p (+19%)?
- 18-month falling range; bounce off floor; breakout
- Now trading 279p (at time of writing)
- Will the pattern repeat itself, rising to the ceiling at 333p?
- Shares -18.7% from 2019 highs; +11.9% from 2019 lows; -4.1% year-to-date.
- Miners higher on hopes of US-China trade dispute resolution
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Glencore – An Example
Let’s say you like the range, you think it’s heading towards 333p. You decide to buy exposure to £10,000 worth of Glencore using a CFD, at the current price of 279p. To do this, you need £2,000.
Let’s assume Glencore rises to 333p (+19%). Your profit would be £1900, 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. Glencore 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.