Is this breakout a good trade for you?
Will KAZ Minerals turn, or will it continue to fall towards 434p?
- Breakdown below 600p to trade 582p (at time of writing).
- The ‘trend is your friend’. Will it continue down towards 434p?
- Shares -21.8% from 2019 highs; +18.1% from 2019 lows; +9.7% year-to-date.
- 29 Apr: Q1 was weak according to Peel Hunt
- 25 Apr: KAZ off to slow start in 2019 says UBS
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading KAZ Minerals – An Example
Let’s say the breakdown appeals to you, you think it’s likely to continue to 434p . You decide to sell exposure to £10,000 worth of KAZ using a CFD, at the current price 582p (at time of writing). To do this, you need £2,000.
Let’s assume the KAZ trend continues down towards 434p (-25%). Your profit would be £2500, 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. KAZ breaks higher, rising 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.