A trading opportunity for you?
Will Cairn Energy break support, or will it rise again back to 182p?
- Cairn Energy has a support zone at 165p since summer 2017
- 5 bounces, most recently this week.
- Now trading 170p (at time of writing).
- Will the pattern repeat itself? Will the shares bounce off support again?
- Shares -8.9% from 2018 highs; +16.6% from 2018 lows; -8.7% year-to-date.
- Cairnis an Oil & Gas exploration company in Greenland, Europe and W Africa.
- 27 Nov: Norway Oil fund revokes exclusions of Cairn Energy
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Cairn Energy – An Example
Let’s say you like the Cairn chart and you think the price is heading back towards 182p again. You decide to buy exposure to £10,000 worth of Cairn using a CFD, at the current price of 170p. To do this, you need £2,000.
Let’s assume Cairn rises back to 182p (+7.1%). Your profit would be £710, 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. Cairn 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.