Will Cairn Energy continue falling, or will it recover to 215p recent highs?

• Cairn Energy fell as much as 26% from March highs.
• Delays to $1.4bn Indian tax claim; ruling unlikely before late 2019.
• Now trades 163p (at time of writing).
• Shares -24.1% from 2019 highs; +12.9% from 2019 lows; +9.2% year-to-date.
• Can the stock recover to recent 215p highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Cairn Energy – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 215p. You decide to buy exposure to £10,000 worth of Cairn Energy using a CFD, at the current price of 163p. To do this, you need £2,000.

Let’s assume Cairn Energy recovers back to 215p recent highs (+31.9%). Your profit would be £3190, 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 falls 5% and hits your stop-loss. Your loss would be £500.

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