A trading opportunity for you?
Will BP break support, or will it rise again to 580p (+5.1%)?
- December uptrend channel, 5 bounces
- Now 547p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 580p (+5.1%)?
- Shares -6.3% from 2019 highs; +12.4% from 2019 lows; +10.2% year-to-date.
- 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 580p again. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 547p. To do this, you need £2,000.
Let’s assume BP rises back to 580p highs (+5.1%). Your profit would be £510, 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.