A range trading opportunity for you?
Will Fresnillo break support, or will it rise back to 900p?
- 830-900p rising channel since March
- Will the pattern repeat itself, rising back to recent highs of 900p?
- Shares -13.5% from 2019 highs; +15% from 2019 lows; +3.4% year-to-date.
- Demand for safehaven miners into; Gold & Silver prices off recent lows
- 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 900p again. You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price of 869p. To do this, you need £2,000.
Let’s assume Fresnillo rises to 1000p (+3.5%). Your profit would be £350, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 1.5% from the current price. Fresnillo falls 1.5% and hits your stop-loss. Your loss would be £150.
This is provided for information purposes only. It should not be taken as a recommendation.