Is this trend a good trading opportunity?
Will Evraz turn, or will it continue to rise to November highs around 584p?
- Shares +19% since late Jan, +11% in the past 2 weeks.
- Steelmaker’s shares broken above December highs of 498p today.
- Iron-ore prices at 4-week highs after mining accident in Brazil.
- Now trading 529p (at the time of writing).
- Will the positive momentum continue towards November highs around 584p?
- Shares -2.6% from 2019 highs; +18.9% from 2019 lows; +10% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Evraz – 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 Evraz using a CFD, at the current price of 529p. To do this, you need £2,000.
Let’s assume the Evraz trend continues to November highs around 584p (+10.3%). Your profit would be £1030, 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. Evraz falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.