Will Cairn Energy turn, or will it continue to rise towards 209p Nov highs?

• Cairn shares are +40% since Christmas.
• Now trading at 192p (at the time of writing)
• Will the strong positive momentum continue?
• Shares -31.5% from 2018 highs; +34.1% from 2018 lows; +28.7% year-to-date.
• 22 Jan: 2018 production update beats expectations
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Cairn Energy – 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 Cairn using a CFD, at the current price of 192p. To do this, you need £2,000.

Let’s assume the Cairn trend continues to 209p Nov highs (+8.8%). Your profit would be £880, 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. Cairn 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.