Will Ferrexpo break support, or will it rise again to 236p?

• Rising support since September.
• 3 bounces to trade 211p (at time of writing).
• Will the pattern repeat, the shares climbing back towards 236p?
• Shares -37.6% from 2018 highs; +45.3% from 2018 lows; +8.5% year-to-date.
• 8 Jan: 2018 production rises
• 14 Dec: Fitch upgrades Ferrexpo redit rating to ‘B+’
• 6 Dec: Ferrexpo declares special dividend following strong cash generation
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Ferrexpo – An Example

Let’s say you like the Ferrexpo chart and you think the price is heading back towards 236p again. You decide to buy exposure to £10,000 worth of Ferrexpo using a CFD, at the current price of 211p. To do this, you need £2,000.

Let’s assume Ferrexpo  rises back to 236p Jan highs (+11.8%). Your profit would be £1180, 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. Ferrexpo 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.