Will BHP Billiton break support, or will it rise again back to 1955p Apr. highs?

• Rising support since February, with 5 bounces
• Latest bounce at 1760p to trade 1780p (at time of writing).
• Will the pattern repeat, the shares climbing back towards 1955p?
• Shares -8.8% from 2019 highs; +14.7% from 2019 lows; +8% year-to-date.
• Suspension of competitor Vale’s Brazil mine tightens iron ore market
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading BHP Billiton – An Example

Let’s say you like the BHP Billiton range, you think it’s heading back towards 1955p again. You decide to buy exposure to £10,000 worth of BHP Billiton using a CFD, at the current price of 1780p. To do this, you need £2,000.

Let’s assume BHP Billiton rises back to 1955p (+9.8%). Your profit would be £980, 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. BHP Billiton 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.