Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make the Antofagasta share price more attractive?

• The chart shows the Antofagasta share price since mid-July.
• Dual broker upgrade for the company in one day.
• Peel Hunt upgrades Antofagasta to Buy, target price at 1000p.
• Macquarie upgrades Antofagasta to Outperform, target price at 920p
• Consensus summary: 13 Buys, 6 Holds, 6 Sell; Average target: 920p (Source: Bloomberg).
• Current share price 781p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards July highs of 1,012p?
• Shares -32.7% from 2018 highs; +8.6% from 2018 lows; -22.2% year-to date

Click to enlarge

Trading Antofagasta – An Example

Let’s say you think that Antofagasta shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Antofagasta using a CFD, at the current price of 781p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Antofagasta share price rises to 1,021p (+30.7%). Your profit would be £3,070 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Antofagasta shares continue their downtrend, they fall 10% and hit your stop-loss. Your loss would be £1,000.

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