Is this breakout a good trade for you?
Will Polymetal turn, or will it continue to rise beyond 775p?
- The chart shows the last year’s price action for Polymetal
- The shares have broken above a resistance line at 750p to trade 776p (at time of writing).
- The ‘trend is your friend’. Will it continue?
- Will the shares rise back to Jan 945p highs?
- Shares -18.8% from 2018 highs; +32.9% from 2018 lows; -15.7% year-to-date.
- 14 Nov: Polymetal joins MSCI Russia Index
- 12 Nov: Polymetal greenlights construction of Nezhda project after feasability study results
- 15 Oct: Polymetal expects to beat FY production guidance
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Polymetal– 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 Polymetal using a CFD, at the current price of 776p. To do this, you need £2,000.
Let’s assume the Polymetal trend continues upwards to 944p (+21.6%). Your profit would be £2160, 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. Polymetal 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.