BP
Is this trend a good trading opportunity?
Will BP turn, or will it continue to rise to 603p Oct highs?
- Shares +12% in 1 week.
- 6 Feb: Barclays says market consensus is too cautious on BP.
- 5 Feb: Strong results beat market consensus
- Now trading 553.5p (at the time of writing).
- Will the positive momentum continue towards 603p?
- Shares trading at 2019 highs; +12.5% from 2019 lows; +11.7% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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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 553.5p. To do this, you need £2,000.
Let’s assume the BP trend continues to Oct highs around 603p (+8.9%). Your profit would be £890, 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.