Cairn Energy
A trading opportunity for you?
Will Cairn Energy break support, or will it rise March 213p highs?
- Rising support since late Dec at 138p
- Bounced 2 times from support zone to trade 172p (at time of writing)
- Will the pattern repeat itself, rising back to March highs around 213p?
- Shares -20% from 2019 highs; +18.9% from 2019 lows; +15% year-to-date.
- 3 Apr: Cairn Energy: Well Plugged, Abandoned After Equinor Drilling
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Cairn Energy – An Example
Let’s say you like the Cairn Energy range, you think it’s heading back up to 213p again. You decide to buy exposure to £10,000 worth of Cairn Energy using a CFD, at the current price of 172p. To do this, you need £2,000.
Let’s assume Cairn Energy rises back to March highs around 213p (+23.8%). Your profit would be £2380, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Cairn Energy falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.