Fresnillo
Is this breakout a good trade for you?
Will Fresnillo turn, or will it continue to rise to May highs of 1361p?
- Breakout above resistance at 976p to trade 1003p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 1361p?
- Shares -33.4% from 2018 highs; +31.9% from 2018 lows; +17.3% year-to-date.
- 31 Jan: Miners higher on hopes of more China stimulus
- 31 Jan: Commodity prices supported by USD weakness after latest Fed update
- 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 to 1361p . You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price 1003p (at time of writing). To do this, you need £2,000.
Let’s assume the Fresnillo trend continues upwards to 1361p May highs (+35.7%). Your profit would be £3570, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Fresnillo breaks lower, falling 7% and it hits your stop-loss. Your loss would be £700.
This is provided for information purposes only. It should not be taken as a recommendation.