Anglo American
A trading opportunity for you?
Will Anglo American break support, or will it rise again to 2100p?
- Rising support since 8 Dec, with 4 bounces,
- Latest bounce at 1900p to trade 1921p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 2100p?
- Shares -4.6% from 2018 highs; +32.7% from 2018 lows; +10.2% year-to-date.
- 12 Feb: Don’t count Mining stocks out in a slowdown, says Goldman Sachs in Barrons.com
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Anglo American – An Example
Let’s say you like the Anglo American chart and you think the price is heading back towards 2100p again. You decide to buy exposure to £10,000 worth of Anglo American using a CFD, at the current price of 1921p. To do this, you need £2,000.
Let’s assume Anglo American rises back to 2100p (+9.3%). Your profit would be £930, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Anglo American falls 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.