Will Petra Diamonds continue falling, or will it rise again back to 45.13p Friday’s highs?

• Petra Diamonds fallen over 9% from Friday’s highs, now +3% off the lows.
• 28 Jan: Small-cap miner reported higher net debt after negative op. cash flow.
• Now trades 42p (at time of writing).
• Shares -12.3% from 2019 highs; +3.4% from 2019 lows; +11.3% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

Click to enlarge

Trading Petra Diamonds – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 45.13p. You decide to buy exposure to £10,000 worth of Petra Diamonds using a CFD, at the current price of 42p. To do this, you need £2,000.

Let’s assume Petra Diamonds recovers back to 45.13p Friday’s highs (+7.4%). Your profit would be £740, 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. Petra Diamonds 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.