Petrofac
Is this trend a good trading opportunity?
Will Petrofac turn, or will it continue to rise to new highs of 1500? (+5.5%)
- Shares +40% from February lows;
- Now trading 518p (at time of writing);
- Will the positive momentum continue towards Feb highs of 557p? (+7%)
- Shares -7% from 2019 highs. + 38% from 2019 lows; -13% year to date
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading Petrofac – 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 Petrofac using a CFD, at the current price of 518p. To do this, you need £2,000.
Let’s assume the Petrofac trend continues to Feb highs of 557p (+7%). Your profit would be £700 from your initial investment of £2000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Petrofac 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.