Will BP break lower, or will it rise back again to 537p?

• BP has traded in a range since early November, bouncing off 502p zone 4 times,
• Now trading 503p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -15.7% from 2018 highs; +12.4% from 2018 lows; -3.8% year-to-date
• 17 Dec: BP plans expansion of Angola activities
• 10 Dec: Helge Lund will become Chairman on 1 Jan
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading BP – An Example

Let’s say you like the range, you think it’s heading back towards 537p again. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 503p. To do this, you need £2,000.

Let’s assume BP rises back to 537p (+6.8%). Your profit would be £675, 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.