Will Cairn Energy turn, or will it continue to rise to Oct highs of 234p?

• Breakout above 195p to trade 203p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 234p?
• Shares -25.9% from 2018 highs; +45.2% from 2018 lows; +35.3% year-to-date.
• 22 Jan: Berenberg says Cairn Energy operationally solid,
• 11 Jan: Cairn Energy is a compelling Buy says BMO
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Cairn Energy – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 234p . You decide to buy exposure to £10,000 worth of Cairn Energy using a CFD, at the current price 203p (at time of writing). To do this, you need £2,000.

Let’s assume the Cairn Energy trend continues upwards to 234p Oct highs (+15.2%). Your profit would be £1520, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Cairn Energy breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.

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