Fresnillo
A trading opportunity for you?
Will Fresnillo break support, or will it rise again to 1027p?
- Bounce of support at 715p with breakout above falling highs
- Now trading 776p (at time of writing)
- Will the pattern repeat itself, rising back to Feb highs of 1027p?
- Shares -24.4% from 2019 highs; +9.1% from 2019 lows; -9.6% year-to-date.
- Safehavens like Gold and their Miners in favour as risk appetite sours
- 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 1027p 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 1027p (+32%). Your profit would be £3200, 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.