A range trading opportunity for you?
Will Fresnillo break support, or will it rise again to 996p?
- Sideways channel since September
- Bounced 4 times from support to trade 817p (at time of writing)
- Will the pattern repeat itself, rising back to recent highs of 996p?
- Shares -20.5% from 2019 highs; +5.8% from 2019 lows; -4.9% year-to-date.
- Markets weak on growth concerns. Could safehaven Miner Fresnillo benefit?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Fresnillo – An Example
Let’s say you like the Fresnillo range, you think it’s heading back up to 996p again. You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price of 817p. To do this, you need £2,000.
Let’s assume Fresnillo rises back to Feb highs of 996p (+21.9%). Your profit would be £2190, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Fresnillo falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.