BP
A trading opportunity for you?
Will BP break support, or will it rise again back to 537p?
- BP has support around 504p with four bounces since mid-November
- Now trading 509p (at time of writing).
- Will the pattern repeat itself? Will the shares bounce off support again?
- Shares -14.8% from 2018 highs; +13.6% from 2018 lows; -2.3% year-to-date.
- 10 Dec: BP’s upstream operations looks to be ahead of targets says Barclays
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading BP – An Example
Let’s say you like the BP chart and you think the price is heading back towards 537p again. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 509p. To do this, you need £2,000.
Let’s assume BP rises back to 537p (+5.5%). Your profit would be £550, 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.