Will BP break support, or will it rise again to 603p?

• Uptrend since December; rising support since February
• Multiple bounces; now trading 577p (at time of writing).
• Will the pattern repeat, the shares climbing back towards 603p?
• Shares -0.5% from 2019 highs; +18.9% from 2019 lows; +16.5% year-to-date.
• 23 Apr: Oil stocks jump as US pressure on Iran boosts prices
• 19 Apr: BP makes new $6bn bet on Caspian Sea
• 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 603p again. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 577p. To do this, you need £2,000.

Let’s assume BP rises back to 603p highs (+4.5%). Your profit would be £450, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. BP falls 2% and hits your stop-loss. Your loss would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.