A trading opportunity for you?
Will Rio Tinto break support, or will it rise again to 5025p?
- Rising channel since Christmas, 5 bounces off floor
- Latest bounce at 4350p to trade 4494p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 5025p?
- Shares -6.4% from 2019 highs; +25% from 2019 lows; +20.2% year-to-date.
- 10 May: Miners gain as investors stay upbeat on commodities says AJ Bell
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Rio Tinto – An Example
Let’s say you like the Rio Tinto chart and you think the price is heading back towards 5025p again. You decide to buy exposure to £10,000 worth of Rio Tinto using a CFD, at the current price of 4494p. To do this, you need £2,000.
Let’s assume Rio Tinto rises back to 5025p (+11.8%). Your profit would be £1180, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Rio Tinto falls 4% and hits your stop-loss. Your loss would be £400.
This is provided for information purposes only. It should not be taken as a recommendation.