Is this breakout a good trade for you?
Will KAZ Minerals turn, or will it continue to rise towards 720p?
- Breakout above 549p to trade 561p (at time of writing).
- The ‘trend is your friend’. Will it continue down towards 720p?
- Shares -24.6% from 2019 highs; +13.8% from 2019 lows; +5.5% year-to-date.
- 10 Jun: Base-metal Miners benefiting from easing of trade worries
- 29 April: Weak Q1 shouldn’t obscure Aktogay potential says Peel Hunt
- 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 720p . You decide to buy exposure to £10,000 worth of KAZ using a CFD, at the current price 561p (at time of writing). To do this, you need £2,000.
Let’s assume the KAZ trend continues up towards 720p (+28%). Your profit would be £2800, 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 lower, falling 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.