A range trading opportunity for you?

Will BP break lower, or will it rise back again to 594p?

• BP has traded in a range since late April, bouncing off 531p zone 3 times,
• Now trading 532p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -11.6% from 2018 highs; +17.8% from 2018 lows; +1.9% year-to-date
• Oil companies benefit from high oil prices (currently $70-80/barrel)
• 22 Oct: BP gets UK approval to develop Alligin field in North Sea
• 8 Oct: Eni, BP and Libya’s NOC to resume Libyan exploration
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading BP – An Example

Let’s say you like the range, you think it’s heading back towards 594p again. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 532p. To do this, you need £2,000.

Let’s assume BP rises back to 594p (+11.6%). Your profit would be £1160, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. BP falls 4% and hits your stop-loss. Your loss would be £400.

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