Tullow Oil
Is this breakout a good trade for you?
Will Tullow Oil turn, or will it continue to rise towards 268p?
- Breakout above 216p to trade 228p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 268p?
- Shares -21.5% from 2018 highs; +34.2% from 2018 lows; +27.2% year-to-date.
- 14 Feb: Canaccord says East Africa project Development looking more certain
- 13 Feb: Citi says dividend returned earlier than expected
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Tullow Oil– An Example
Let’s say the breakout appeals to you, you think it’s likely to continue to 268p . You decide to buy exposure to £10,000 worth of Tulllow using a CFD, at the current price 228p (at time of writing). To do this, you need £2,000.
Let’s assume the Tulllow trend continues upwards to 268p (+17.5%). Your profit would be £1750, 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. Tulllow 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.