A range trading opportunity for you?
Will Acacia Mining break support, or will it rise again to 209p (+19%)?
- Rising support since April; Bounced 8 times
- Now trading 176p (at time of writing)
- Will the pattern repeat itself, rising back to April highs of 209p (+19%)?
- Shares -34.4% from 2019 highs; +28.4% from 2019 lows; -4% year-to-date.
- Gold prices rising, helping gold Miners, boosted by geopolitical worries and weak USD
- 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 209p again. You decide to buy exposure to £10,000 worth of Acacia using a CFD, at the current price of 176p. To do this, you need £2,000.
Let’s assume Acacia rises back to April highs of 209p (+19%). Your profit would be £1900, 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.