Fresnillo
A trading opportunity for you?
Will Fresnillo break support, or will it rise again to 896p?
- Support around 758p since October
- Now trading 776p (at time of writing)
- Will the pattern repeat itself, rising back to recent highs of 896p?
- Shares -24.4% from 2019 highs; +2.7% from 2019 lows; -9.7% year-to-date.
- Risk-off into long weekend could boost demand for safehaven metals and miners
- 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 896p again. You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price of 776p. To do this, you need £2,000.
Let’s assume Fresnillo rises back to highs of 896p (+15.4%). Your profit would be £1540, 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.