Cairn Energy
A trading opportunity for you?
Will Cairn Energy break support, or will it rise again back to 271p May highs?
- Cairn Energy has bounced off rising support zone.
- Bounced 5 times since January 2016, latest bounce off 202p today.
- Now trading 204.6p (at time of writing).
- According to brokers at Peel Hunt (13 Sep), could see a “transformational effect” if it is awarded the full $1.4bn in damages from Indian tax authorities by a court in the Hague.
- Shares -24.7% from 2018 highs; now trading at 2018 lows; -20.8% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Cairn Energy – An Example
Let’s say you like the Cairn Energy range, you think it’s heading back towards 271p again. You decide to buy exposure to £10,000 worth of Cairn Energy using a CFD, at the current price of 204p. To do this, you need £2,000.
Let’s assume Cairn Energy rises back to 271p (+32.8%). Your profit would be £3,280, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Cairn Energy falls 10% and hits your stop-loss. Your loss would be £1,000.
This is provided for information purposes only. It should not be taken as a recommendation.