Is this breakout a good trade for you?
Will Rio Tinto turn, or will it continue to rise towards 2008. highs of 5800p?
- Breakout above 4500p to trade 4758p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 5000p? (+6%)
- Shares at 2019 highs; +25% from 2019 lows; +25 year-to-date.
- 31 Mar: Rio Tinto cut its 2019 outlook for iron ore shipments from Australia’s Pilbara
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Rio Tinto – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to 5000p . You decide to buy exposure to £10,000 worth of Rio Tinto using a CFD, at the current price 4758p (at time of writing). To do this, you need £2,000.
Let’s assume the Rio Tinto trend continues upwards to 5000p (+6%). Your profit would be £600, 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. Rio Tinto 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.