Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make the BP share price more attractive?

• The chart shows the BP share price since July 2016.
• Morningstar upgrades BP  to Buy, maintaining the target price at 670p.
• Consensus summary: 19 Buys, 9 Holds, 1 Sell; Average target: 642p (Source: Bloomberg).
• Current share price 533p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 603p late October highs?
• Shares -11.6% from 2018 highs; +17.8% from 2018 lows; +2.2% year-to date

Click to enlarge

Trading BP – An Example

Let’s say you think that BP shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 533p. To do this, you need £2,000.

For the purpose of this example, let’s assume the BP share price rises to 603p (+13.1%). Your profit would be £1,310 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. BP shares continue their downtrend, they fall 7% and hit your stop-loss. Your loss would be £700.

This is provided for information purposes only. It should not be taken as a recommendation.