BP
A trading opportunity for you?
Will BP break support, or will it rise again back to 544p?
- BP has rising support at 482p with 5 bounces since August 2017
- Now trading 501p (at time of writing).
- Will the pattern repeat itself? Will the shares bounce off support again?
- Shares -16.7% from 2018 highs; +11.1% from 2018 lows; -4.0% year-to-date.
- Oil prices +2.5% today
- 21 Dec: BP green lights LNG development on Mauritania, Senegal border
- 19 Dec: Reuters says BP looking to sell $3bn in US onshore oil and gas assets
- 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 544p again. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 501p. To do this, you need £2,000.
Let’s assume BP rises back to 544p (+8.6%). Your profit would be £860, 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.