Is this trend a good trading opportunity?
Will Petrofac turn, or will it continue to rise to 559p Feb highs?
- Shares +26% since mid-Feb.
- 28 Feb: Oil company reported a swing to net profit in 2018 thanks to disposals.
- Now trading 472p (at the time of writing).
- Will the positive momentum continue to 559p Feb highs?
- Shares -16.1% from 2019 highs; +25.2% from 2019 lows; -1.2% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Petrofac – 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 Petrofac using a CFD, at the current price of 427p. To do this, you need £2,000.
Let’s assume the Petrofac trend continues to 559p Feb highs (+18.4%). Your profit would be £1840, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Petrofac falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.