BP
Is this trend a good trading opportunity?
Will BP turn, or will it continue to rise beyond 565p?
- The chart shows BP price action over the last week.
- Shares +9.3% from last week’s lows. Will this momentum continue?
- Shares -9.5% from 2018 highs; +20.7% from 2018 lows; +7.9% year-to-date.
- 31 Oct: Berenberg says BP reflects confidence with cash for BHP assets
- 31 Oct: Q3 profits more than doubled on higher oil prices
- Source: Bloomberg, FT, Reuters, DJ Newswires
Click to enlarge
Trading BP – 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 BP using a CFD, at the current price of 563p. To do this, you need £2,000.
Let’s assume the BP trend continues to October highs of 600p (+6.5%). Your profit would be £650, 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 falls 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.