Acacia Mining
A range trading opportunity for you?
Will Acacia Mining break support, or will it rise again to 268p?
- Horizontal reistance-turned support since mid-Dec at 201p.
- Rising support since late Sept at 202p
- Bounced 7 times from support zone to trade 203p (at time of writing)
- Will the pattern repeat itself, rising back to Feb highs around 268p?
- Shares -24.1% from 2019 highs; +19.6% from 2019 lows; +11% year-to-date.
- 4 Mar: Peel Hunt says Acacia Mining is “one of the more interesting gold stocks”.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Acacia Mining – An Example
Let’s say you like the Acacia range, you think it’s heading back up to 268p again. You decide to buy exposure to £10,000 worth of Acacia using a CFD, at the current price of 203p. To do this, you need £2,000.
Let’s assume Acacia rises back to Feb highs around 268p (+17.6%). Your profit would be £1760, 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. Tullow Oil 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.