Yesterday the $3.75 stop loss for the South 32 (S32) position was reached, and the position has now been closed.
The S32 share price has fallen sharply in the last few days due to continued concerns about lockdowns in China and a potential global recession caused by rising interest rates.
Both rising interest rates and lockdowns in China lead to lower growth. Consequently, this feeds into lower growth and reduced demand for commodities, those same commodities which S32 produces.
The recent bull run in commodity prices looks over for the time being, and exiting S32 reduces our exposure to commodity stocks.
The High Conviction Reports stop loss level was set at $3.75. The S32 share price gap lower at the start of trading yesterday, opening at $3.60, so the position was closed at this price.
Closed position result
Number of shares: 2,000
Entry Price: $4.94
Exit Price: $3.60
Result: Loss $2,680.00