A trading opportunity for you?

Will Sirius Minerals continue falling, or will it rise again back to 31p last week’s highs?

• The price has fallen over 22.7% in five weeks.
• Shares are down over 26.1% from 2018 highs, +39.2% from 2018 lows, +20.8% year-to-date.
• Shares have fallen after company admitted its future may be in doubt as the cost of its North Yorkshire mine rises.
• Company still expects to secure $3.6bn in financing for the project, but admits there are “material uncertainties” surrounding the project (Source: Bloomberg, FT, Reuters).
• Shares have been as high as 31p last week, and as low as 22.62p. It is now at 28.19p.
• Will the sell-off continue, or can the shares recover?

Click to enlarge

Trading Sirius Minerals – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards last week’s high of 31p. You decide to buy exposure to £10,000 worth of Sirius Minerals using a CFD, at the current price of 28.19p. To do this, you need £2,000.

Let’s assume Sirius Minerals recovers back to 31p (+10%). Your profit would be £1,000, 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. Sirius Minerals 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.