A trading opportunity for you?

Will Anglo American break support, or will it rise again back to October’s 1772p highs?

• Anglo American has a support zone around 1580p since September, having bounced 5 times 
• Now trading 1600p (at time of writing).
• Shares -16.8% from 2018 highs; +13.1% from 2018 lows; +3.25% year-to-date.
• 24 Oct: Jefferies analysts say, Anglo American shares are undervalued thanks to high dividend yield, strong balance sheet, growth in copper production and cost cutting.
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Anglo American – An Example

Let’s say you like the Anglo American chart and you think the price is heading back towards 1772p again. You decide to buy exposure to £10,000 worth of Anglo American using a CFD, at the current price of 1600p. To do this, you need £2,000.

Let’s assume Anglo American rises back to 1772p (+10.75%). Your profit would be £1075, 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. Anglo American 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.