Is this an opportunity to take a position ahead of the results?

Anglo American reports results on Tuesday (23 Oct)

• The chart shows the price movement last time Anglo American reported: half-year results, 26 Jul.
• H1 sales were +13% YoY thanks to increase in price of copper, platinum and coal. Diamond production was up 8% to 17.5m carats.
• Net profit, however, fell 9% due to suspension of the giant Minas-Rio iron ore mine in Brazil.
• Shares opened 6p higher (+0.4%), but fell through the session as low as -40.4p (-2.4%), closing -12.6p (-0.7%); daily range 46.8p (2.8%).
• Shares -13.92% from 2018 highs; +17% from 2018 lows; +6.2% year-to-date.
• Recent share price range: Oct lows 1,586p; Oct highs 1,774p. Currently 1,645p (at time of writing).
• Anglo American reports Q3 Production Results on Tuesday (23rd Oct).
• Will we see another big move?

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Trading Anglo American – An Example

Let’s say you think that Anglo American results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Anglo American using CFDs, at the current price of 1,645p. To do this, you need £2,000.

For the purpose of this example, let’s assume Anglo American reports strong results and the shares rise 5%. Your profit would be £500, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss 4% below the current price. Anglo American results miss, it falls 4% and hits your stop-loss. Your loss would be £400.

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