Will Tullow Oil break lower, or will it rise back again to 276p?

• The Tullow trading range has developed since mid-May.
• Shares bounced off 211p support zone 8 times, most recently a week ago.
• Now trading 214p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -22.7% from 2018 highs; +27.5% from 2018 lows; +3.6% year-to-date
• Analysts at Canaccord Genuity  (17 Sept), Tullow Oil is getting back on track.
• “Tullow is showing clear signs of a return to meaningful exploration”, according to the brokerage.
• 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 276p again. You decide to buy exposure to £10,000 worth of Tullow using a CFD, at the current price of 214p. To do this, you need £2,000.

Let’s assume Tullow rises back to 276p (+29%). Your profit would be £2900, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Tullow falls 9% and hits your stop-loss. Your loss would be £900.

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