A range trading opportunity for you?
Will BP break lower, or will it rise back again to 598p?
- Rising range since December; Now trading 544p (at time of writing)
- Will the pattern repeat itself, rising to the ceiling at 598p?
- Shares -6.7% from 2019 highs; +12% from 2019 lows; +9.7% year-to-date.
- 3 May: Agreed to sell interests in Gulf of Suez, to Dragon Oil, a subsidiary of Emirates National Oil Co
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading BP – An Example
Let’s say you like the range, you think it’s heading towards 598p. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 544p. To do this, you need £2,000.
Let’s assume BP rises to 598p (+9.9%). Your profit would be £990, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from 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.