A trading opportunity for you?
Will Evraz break support, or will it rise again back to 589p October highs?
- Evraz has traded around a 457p support zone since mid-May.
- Bounced off support 3 times, most recently today.
- Now trading 465p (at time of writing).
- Shares -21.8% from 2018 highs; +39.4% from 2018 lows; +36.6% year-to-date.
- Will the pattern repeat itself, with the shares bouncing off support again?
- 25 Oct: Steelmaker reported that steel output fell, but production of coking coal increased 9.6% QoQ.
- Steel production fall was mostly due to lower pig iron output, which is expected to recover in Q4.
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Evraz – An Example
Let’s say you like the Evraz chart and you think the price is heading back towards 589p again. You decide to buy exposure to £10,000 worth of Evraz using a CFD, at the current price of 465p. To do this, you need £2,000.
Let’s assume Evraz rises back to 589p (+26.6%). Your profit would be £2660, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Evraz falls 9% and hits your stop-loss. Your loss would be £900.
This is provided for information purposes only. It should not be taken as a recommendation.