Is this breakout a good trade for you?
Will Antofagasta turn, or will it continue up towards 1022p?
- Breakout above 853p to trade 865p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 1022p?
- Shares -15.6% from 2019 highs; +18.9% from 2019 lows; +10.5% year-to-date.
- 10 Jun: Base-metal Miners hit by easing of trade worries
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Antofagasta – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to 1022p . You decide to buy exposure to £10,000 worth of Antofagasta using a CFD, at the current price of 865p (at time of writing). To do this, you need £2,000.
Let’s assume the Antofagasta trend continues up towards 1022p (+18.1%). Your profit would be £1810, 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. Antofagasta breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.