A range trading opportunity for you?
Will Hochschild Mining break lower, or will it rise to 209p again?
- Sideways 191-209p range since Feb;
- Bounced again of floor to trade 194p (at time of writing).
- Will the pattern repeat itself, testing previous 209p highs?
- Shares -8.4% from 2019 highs; +25.4% from 2019 lows; +24.1% year-to-date
- 8 Mar: Hochschild going slow but steady says RBC
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Hochschild – An Example
Let’s say you like the Hochschild range, you think it’s heading back towards 209p again. You decide to buy exposure to £10,000 worth of Hochschild using a CFD, at the current price of 194p. To do this, you need £2,000.
Let’s assume Hochschild rises back to 209p (+7.7%). Your profit would be £770, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Hochschild 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.