Will Ferrexpo continue falling, or will it rise again back to recent 230p October highs?

• Ferrexpo shares have fallen over 9% today to trade 195p (at time of writing).
• Shares -32.85% from 2018 highs; +56.45% from 2018 lows; -33.15% year-to-date.
• Recent share price range: Sept lows 138p; Oct highs 230p.
• Ferrexpo shares falling after Chinese manufacturing sector showed the weakest reading since June 2016, just short of contraction.
• Miners like Ferrexpo are very sensitive to China’s macroeconomic data.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Ferrexpo – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 230p. You decide to buy exposure to £10,000 worth of Ferrexpo using a CFD, at the current price of 195p. To do this, you need £2,000.

Let’s assume Ferrexpo recovers back to 230p (+17.9%). Your profit would be £1790, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Ferrexpo falls 8% and hits your stop-loss. Your loss would be £800.

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