Will Anglo American break support, or will it rise again to 2228p?

• Shallow rising support since late Jan, with 5 bounces
• Latest bounce at 1950p to trade 1971p (at time of writing).
• Will the pattern repeat, the shares climbing back towards 2228p?
• Shares -11.5% from 2019 highs; +18.4% from 2019 lows; +12.9% year-to-date.
• 8 May: Miners bolstered by China trade date (export fall but import rebound)
• 3 May: Anglo American growth bid unappreciated says Credit Suisse
• 25 Apr: Anglo American Q1 Copper Production +4%
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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 2228p again. You decide to buy exposure to £10,000 worth of Anglo American using a CFD, at the current price of 1971p. To do this, you need £2,000.

Let’s assume Anglo American rises back to 2228p (+13%). Your profit would be £1300, 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.