A range trading opportunity for you?
Will Fresnillo break support, or will it rise back to 996p?
- 769-996p range since September, trading off the floor
- Now trades 822p (at time of writing)
- Will the pattern repeat itself, testing previous 996p ceiling?
- Shares -20% from 2019 highs; +6.3% from 2019 lows; -4.5% year to date
- Markets weak on growth concerns. Could safehaven Miner Fresnillo benefit?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Fresnillo – An Example
Let’s say you like the range, you think it’s heading back towards 996p again. You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price of 822p. To do this, you need £2,000.
Let’s assume Fresnillo rises to 996p (+21.1%). Your profit would be £2110, 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. Fresnillo 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.