Is this trend a good trading opportunity?
Will Antofagasta turn, or will it continue to march upwards beyond 818p?
- The chart shows the Antofagasta price action since late-November.
- Shares are in a January uptrend from 727p lows; now at 818p.
- Shares -30.9% from 2018 highs; +13.5% from 2018 lows; +4.4% year-to-date.
- Miners higher this week on hopes about US-China trade talks and China stimulus
- In the past week, the shares have risen over 12%. Will this momentum continue?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Antofagasta – An Example
Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Antofagasta using a CFD, at the current price of 818p. To do this, you need £2,000.
Let’s assume Antofagasta’s trend continues to 873p Dec highs (+6.7%). Your profit would be £670, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% below the current price. Antofagasta 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.