Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make Glencore’s share price attractive?

• The chart shows Glencore’s share price movements since mid-May.
• Shares -20.8% from 2018 highs; +16.0% from 2018 lows; -12.9% year-to date
• Barclays upgraded Glencore to Overweight (from Equalweight) and trimmed its target price to 390p (from 400p).
• Consensus summary: 23 Buys, 6 Holds, 1 Sell; Average target: 413p (Source: Bloomberg).
• Current share price 339p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 400p May/June highs?

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Trading Glencore – An Example

Let’s say you think that Glencore shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Glencore using a CFD, at the current price of 339p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Glencore share price rises to 400p (+18.0%). Your profit would be £1,800 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at % from the current price. Glencore shares continue their July downtrend, they fall 5% and hit your stop-loss. Your loss would be £500.

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