Is this breakout a good trade for you?
Will Ferrexpo turn, or will it continue to rise towards March highs of 320p?
- Breakout above 280p; Now trading 294p (at time of writing).
- Could they recover to Mar highs of 320p (+8%)
- Shares -15% from 2019 highs; +20% from 2019 lows; -11% year-to-date
- Gold/silver prices rally on fading hopes of a quick US-China trade deal
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Ferrexpo – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 320p. You decide to buy exposure to £10,000 worth of Ferrexpo susing a CFD, at the current price of 320p. To do this, you need £2,000.
Let’s assume the Ferrexpo trend continues to highs of 320p (+7%). Your profit would be £700, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Ferrexpo breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.