BP
A trading opportunity for you?
Will BP break support, or will it rise again to 596p?
- Uptrend since Aug 2016, steeper since December.
- Multiple bounces ; now trading 521p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 596p?
- Shares -15.2% from 2018 highs; +13.0% from 2018 lows; +5.0% year-to-date.
- 31 Jan: Peer Shell posts strong Q4 results and BP reports next Tues
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Click to enlarge
Trading BP – An Example
Let’s say you like the BP chart and you think the price is heading back towards 596p again. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 521p. To do this, you need £2,000.
Let’s assume BP rises back to 596p 2018 highs (+14.4%). Your profit would be £1440, 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. BP 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.