Is this breakout a good trade for you?
Will Fresnillo turn, or will it continue to rise beyond 950p?
- The chart shows the last 7 months’ price action for Fresnillo.
- The shares have broken above resistance at 930p to trade 950p (at time of writing).
- The ‘trend is your friend’. Will it continue? Will the shares revisit June 1361p highs?
- Shares -36.9% from 2018 highs; +24.9% from 2018 lows; -10.3% year-to-date.
- Fresnillo is a Mexico-focused silver miner.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Fresnillo – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price of 950p. To do this, you need £2,000.
Let’s assume the Fresnillo trend continues upwards to 1361p June highs (+43.2). Your profit would be £43200, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Fresnillo breaks lower, falling 10% and it hits your stop-loss. Your loss would be £1,000.
This is provided for information purposes only. It should not be taken as a recommendation.