Is this trend a good trading opportunity?
Will Anglo American turn, or will it continue to rise towards highs of 2228p?
- Shares +10% from recent lows; breakout
- Now trading 2066p (at time of writing);
- Will the positive momentum continue towards highs of 2228p?
- Shares -7.4% from 2019 highs; +23.8% from 2019 lows; +18.16% year-to-date
- 10 Jun: Base-metal Miners hit by easing of trade worries
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Anglo American – An Example
Let’s say the trend appeals to you, you think it’s likely to continue up to 2228p. You decide to buy exposure to £10,000 worth of Anglo American using a CFD, at the current price of 2066p. To do this, you need £2,000.
Let’s assume the Anglo American trend continues to highs of 2228p (+7.8%). Your profit would be £780, 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. Anglo American falls 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.