A trading opportunity for you?
Will Rio Tinto break support, or will it rise again to 5000p (+4.4%)?
- Rising channel since Feb and April
- Now trading 4788p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 5000p (+4.4%)?
- Shares -4.9% from 2019 highs; +33.6% from 2019 lows; +28.5% year-to-date.
- 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 5000p again. You decide to buy exposure to £10,000 worth of Rio Tinto using a CFD, at the current price of 4788p. To do this, you need £2,000.
Let’s assume Rio Tinto rises back to 5000p (+4.4%). Your profit would be £440, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Rio Tinto falls 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.