BP
A range trading opportunity for you?
Will BP break lower, or will it rise back again to 586p?
- Rising range since December; Now trading 555p (at time of writing)
- Will the pattern repeat itself, testing previous 586p highs?
- Shares -4.7% from 2019 highs; +14.5% from 2019 lows; +12.3% year-to-date.
- 30 Apr: Q1 Profits beat market expectations; dividend +2.5%
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading BP – An Example
Let’s say you like the range, you think it’s heading back towards 586p again. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 555p. To do this, you need £2,000.
Let’s assume BP rises back to 586p (+5.5%). Your profit would be £550, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. BP falls 2% and hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.