BP
Is this breakout a good trade for you?
Will BP turn, or will it continue to rise towards 601p?
- Breakout above 554p; Now trading 559p (at time of writing).
- Could they recover to prior highs of 601p?
- Shares -0.2% from 2019 highs; +16.3% from 2019 lows; +12.9% year-to-date
- Oil prices are trading at best since mid-November
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading BP – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 601p. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 559p. To do this, you need £2,000.
Let’s assume the BP trend continues to highs of 601p (+7.5%). Your profit would be £750, 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 breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.