Will Cairn Energy turn, or will it continue to rise towards 215p highs (+23%)?

• Shares +23% from recent lows; Now trading 175p (at the time of writing)
• Will the strong positive momentum continue to 215p (+23%)?
• Shares -18.6% from 2019 highs; +23.2% from 2019 lows; +17.2% year-to-date.
• Higher oil prices helping oil explorers
• 17 May: Cairn says production on track to meet guidance
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Cairn Energy – 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 Cairn using a CFD, at the current price of 175p. To do this, you need £2,000.

Let’s assume the Cairn trend continues to 215p highs (+23%). Your profit would be £2300, 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 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.