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BP

Is this trend a good trading opportunity?

Will BP turn, or will it continue to gain momentum toward 593p July highs?

  • The chart shows price action since early July.
  • Currently trading at 583p (as of the time of writing).
  • BP shares are -1.7% from 2018 highs; +26% from 2018 lows; +11.6% year-to-date.
  • Shares are rising thanks to Brent Crude oil price reaching 4-year highs above $81/barrel
  • Goldman Sachs says (14 Sep) BP is likely to hit a “cash flow sweet spot” next year thanks to strong earnings and largest-ever project pipeline.
  • Shares in a 2-week uptrend (+8.4% in the last 2 weeks). Will the momentum continue?

Click to enlarge

Trading BP – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 583p. To do this, you need £2,000.

Let’s assume BP trend continues to 593p 2018 highs. Your profit would be £170, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% below the current price. BP 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.

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Prepared by Michael van Dulken, Head of Research
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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