Will Glencore break support, or will it rise again back to highs of 341p?

• Glencore has shallow rising support since mid-September
• Now trading 299p (at time of writing).
• Will the pattern repeat itself, the share rebounding to 341p?
• Shares -28.8% from 2018 highs; +4.4% from 2018 lows; -23.2% year-to-date.
• Glencore is a diversified Miner and commodity trading house
• 26 Oct: Bernstein says Glencore Q3 metal production strong
• 26 Oct: Citi says Glencore set for stronger Q4 after in-line Q3
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Glencore – An Example

Let’s say you like the Glencore chart and you think the price is heading back towards 341p again. You decide to buy exposure to £10,000 worth of Glencore using a CFD, at the current price of 299p. To do this, you need £2,000.

Let’s assume Glencore rises back to 341p (+14%). Your profit would be £1400, 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. Glencore 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.