Will BHP Billiton break support, or will it rise again back to 1709p Jan highs?

• BHP Billiton has support since mid-Dec, recording 5 bounces
• Latest bounce today to trade 1592p (at time of writing).
• Will the pattern repeat itself? Will the shares bounce off support again?
• Shares -11.5% from 2018 highs; +18.4% from 2018 lows; -3.4% year-to-date.
• 8 Jan: Citi says commodity price threat to miners may be misread
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading BHP Billiton – An Example

Let’s say you like the BHP Billiton range, you think it’s heading back towards 1709p again. You decide to buy exposure to £10,000 worth of BHP Billiton using a CFD, at the current price of 1592p. To do this, you need £2,000.

Let’s assume BHP Billiton rises back to 1709p (+7.3%). Your profit would be £730, 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. BHP Billiton 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.