Will Centamin continue falling, or will it rise again back to recent 109p October highs?

• Centamin shares have fallen close to 9% in the past 2 weeks to trade 96p (at time of writing).
• Shares -47% from 2018 highs; +35% from 2018 lows; -45.6% year-to-date.
• Recent share price range: Oct lows 87p; Oct highs 109p.
• Gold-mining company reported sharply lower Q3 revenue and pre-tax profit -69%, and falling gold production.
• Earlier this month, Centamin revised full-year gold production guidance lower.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

Click to enlarge

Trading Centamin – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 109p. You decide to buy exposure to £10,000 worth of Centamin using a CFD, at the current price of 96p. To do this, you need £2,000.

Let’s assume Centamin recovers back to 109p (+13.5%). Your profit would be £1350, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Centamin 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.