Glencore
A range trading opportunity for you?
Will Glencore break support, or will it rise again to 317p?
- Rising support since mid-January at 293p
- Bounced 4 times from support to trade 301p (at time of writing)
- Will the pattern repeat itself, rising back to recent highs of 317p?
- Shares -5% from 2019 highs; +12.4% from 2019 lows; +3.55% year-to-date.
- 11 Mar: Miners benefit from an overnight stock rally in China.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Glencore – An Example
Let’s say you like the Glencore range, you think it’s heading back up to 317p again. You decide to buy exposure to £10,000 worth of Glencore using a CFD, at the current price of 301p. To do this, you need £2,000.
Let’s assume Glencore rises back to Feb highs of 317p (+5.3%). Your profit would be £530, 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. Glencore 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.