Cairn Energy
A trading opportunity for you?
Will Cairn Energy break support, or will it rise again back to 241p ?
- Support developed over last 5 months.
- Bounced off 208p zone 6 times since early April. Now trading at 216p (at time of writing)
- Will the pattern repeat itself, bouncing up again towards 241p?
- Shares -20.6% from 2018 highs; +19.6% from 2018 lows
- Shares fell after results last week; Oil prices supported by supply constraints
Trading Cairn Energy – An Example
Let’s say you like the range, you think it’s heading back towards 241p again. You decide to buy exposure to £10,000 worth of Cairn Energy using a CFD, at the current price of 216.5p. To do this, you need £2,000.
Let’s assume Cairn Energy recovers back to 241p. Your profit would be £1,130, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price, at 204p. Cairn Energy falls 6% and hits your stop-loss. Your loss would be £600.
This is provided for information purposes only. It should not be taken as a recommendation.