Fresnillo
A range trading opportunity for you?
Will Fresnillo break support, or will it rise again to 996p?
- Sideways channel since September; breakout above 819p
- Bounced 4 times from support to trade 839p (at time of writing)
- Will the pattern repeat itself, rising back to recent highs of 996p?
- Shares -18.6% from 2019 highs; +8.2% from 2019 lows; -2.7% year-to-date.
- Precious metals higher after dovish Fed update pushed USD lower
- 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 839p. To do this, you need £2,000.
Let’s assume Fresnillo rises back to Feb highs of 996p (+18.7%). Your profit would be £1870, 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.