Glencore
Is this breakout a good trade for you?
Will Glencore turn, or will it continue to rise to May highs of 341p?
- Breakout above resistance at 302p to trade 308p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 341p?
- Shares -26.8% from 2018 highs; +13.8% from 2018 lows; +5.8% year-to-date.
- 31 Jan: Miners higher on hopes of more China stimulus, weaker USD and lower iron ore production
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Glencore – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to 341p . You decide to buy exposure to £10,000 worth of Glencore using a CFD, at the current price 308p (at time of writing). To do this, you need £2,000.
Let’s assume the Glencore trend continues upwards to 341p Oct highs (+10.7%). Your profit would be £1070, 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. Glencore 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.