Petrofac
A trading opportunity for you?
Will Petrofac continue falling, or will it rise again back to 560p this week’s highs?
- Petrofac shares -12.8% today; as low as -15.4% from this week’s highs.
- Oil firm’s executive admitted to 11 bribery charges in Iraq and Saudi Arabia.
- Now trades 483p (at time of writing).
- Shares -14% from 2019 highs; +3.8% from 2019 lows; +3% year-to-date.
- Can the stock recover to recent highs?
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Petrofac – An Example
Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 560p. You decide to buy exposure to £10,000 worth of Petrofac using a CFD, at the current price of 483p. To do this, you need £2,000.
Let’s assume Petrofac recovers back to 560p this week’s highs (+15.9%). Your profit would be £1590, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Petrofac falls 6% and hits your stop-loss. Your loss would be £600.
This is provided for information purposes only. It should not be taken as a recommendation.