A range trading opportunity for you?
Will Acacia Mining break support, or will it rise again to 268p?
- Rising support since October; Bounced 5 times
- Now trading 207.7p (at time of writing)
- Will the pattern repeat itself, rising back to Feb highs around 268p?
- Shares -22.5% from 2019 highs; +22.1% from 2019 lows; +13.3% 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 207.7p. To do this, you need £2,000.
Let’s assume Acacia rises back to Feb highs of 268p (+29.4%). Your profit would be £2940, 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. Acacia 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.