A range trading opportunity for you?

Will BP break higher, or will it fall back again to 540p?

• BP’s range has developed since May
• Bounced back from 593p zone 3 times. Now trading 590p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -1.3% from 2018 highs; +29.5% from 2018 lows; +12.9% year-to-date
• BP (27 Sept) gets approval to develop Vorlich Field in North Sea, expecting to produce 20K barrels of oil equivalent (BOE)/day at peak, aiming for it to be onstream 2020; targeting total North Sea development of 30m BOE/day.

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Trading BP – An Example

Let’s say you like the range, you think it’s heading back towards 540p again. You decide to sell exposure to £10,000 worth of BP using a CFD, at the current price of 590p. To do this, you need £2,000.

Let’s assume BP falls back to 540p (-8.5%). Your profit would be £850, 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. BP rises 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.