Is this trend a good trading opportunity?

Will Tullow Oil turn, or will it continue to gain momentum toward 276p?

• The chart shows price action since mid-July.
• Currently trading at 254.9p (as of the time of writing).
• Tullow Oil shares are -11.6% from 2018 highs; +45.8% from 2018 lows; -23.3% year-to-date.
• Shares are rising thanks to Brent Crude oil price rising above the $80/barrel level.
• Last week’s broker upgrade by Canaccord Genuity helped shares gain momentum.
• Shares in a 2-week uptrend (+18% in the last 2 weeks). Will the momentum continue?

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Trading Tullow Oil – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Tullow Oil using a CFD, at the current price of 254.9p. To do this, you need £2,000.

Let’s assume Tullow Oil trend continues to 276.7p July highs (+8.5%). Your profit would be £276.7, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% below the current price. Tullow Oil 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.