Will BHP Billiton break support, or will it rise again back to 1657p November highs?

• BHP Billiton has a trendline of rising support since May 2017, recording 8 bounces
• Now trading 1524p (at time of writing).
• Shares -15.7% from 2018 highs; +12.7% from 2018 lows; flat year-to-date.
• 21 Nov: BHP’s chief financial officer labelled the miner a value investor.
• 17 Oct: BHP is running smoothly says RBC Capital Markets, with Oil weakness likely to be offset by increases in coal and copper production
• Source: Bloomberg, FT, Reuters, DJ Newswires

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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 1657p again. You decide to buy exposure to £10,000 worth of BHP Billiton using a CFD, at the current price of 1524p. To do this, you need £2,000.

Let’s assume BHP Billiton rises back to 1657p (+8.7%). Your profit would be £870, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. BHP Billiton falls 4% and hits your stop-loss. Your loss would be £400.

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