Is this trend a good trading opportunity?
Will Fresnillo turn, or will it continue to rise to October high of 988p?
- The chart shows the Fresnillo price action since early December.
- Shares in a weeklong uptrend from 753p December lows; now at 907p.
- Shares now trade 2019 highs; +4.7% from 2019 lows; +5.34% year-to-date.
- Fresnillo is a Mexico-focused silver miner.
- Precious metals miners are benefiting from recent US-China trade truce.
- In the last 5 weeks, the shares have risen close to 20%. Will this momentum continue?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Fresnillo – 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 Fresnillo using a CFD, at the current price of 907p. To do this, you need £2,000.
Let’s assume Fresnillo trend continues to October high of 988p (+8.9%). Your profit would be £890, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Fresnillo falls 4% and hits your stop-loss. Your loss would be £400.
This is provided for information purposes only. It should not be taken as a recommendation.