Will Tullow Oil break lower, or will it rise back again to 250p?

• The Tullow trading range has developed since late June.
• Shares bounced off 210p support zone 4 times, most recently on Friday.
• Now trading 218.25p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -21.2% from 2018 highs; +30.0% from 2018 lows; +6.0% year-to-date
• Tullow Oil issues a trading update on 15 November 
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Tullow – An Example

Let’s say you like the Tullow range, you think it’s heading back towards 250p again. You decide to buy exposure to £10,000 worth of Tullow using a CFD, at the current price of 218.25p. To do this, you need £2,000.

Let’s assume Tullow rises back to 250p (+14.5%). Your profit would be £1,450, 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. Tullow 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.