BP
Is this breakout a good trade for you?
Will BP turn, or will it continue to rise towards 580p?
- Breakout above 542p; Now trading 547p (at time of writing).
- Could they recover to April highs of 580p?
- Shares -6.2% from 2019 highs; +12.6% from 2019 lows; +10.3% year-to-date
- Oil prices off their loes
- 3 Jun: BP says to sell Gulf of Suez interests to Dragon Oil
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Click to enlarge
Trading BP – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 580p. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 547p. To do this, you need £2,000.
Let’s assume the BP trend continues to highs of 580p (+6). Your profit would be £600, 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 breaks lower, falling 2% and it hits your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.