Will Fresnillo continue falling, or will it rise again back to 1027p last week’s highs?

• Fresnillo shares -15% from last week’s highs, -9% today.
• 26 Feb: Silver miner’s profit fell last year and warned of a challenging year ahead.
• Now trades 888p (at time of writing).
• Shares -13.5% from 2019 highs; +4.4% from 2019 lows; +3.4% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Fresnillo – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 1027p. You decide to buy exposure to £10,000 worth of Fresnillo  using a CFD, at the current price of 888p. To do this, you need £2,000.

Let’s assume Fresnillo recovers back to last week’s highs of 1027p (+15.6%). Your profit would be £1560, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Fresnillo falls 6% and hits your stop-loss. Your loss would be £600.

This is provided for information purposes only. It should not be taken as a recommendation.