Will Tullow Oil break lower, or will it rise back again to 218p?

• The Tullow trading range has developed since late-May.
• Shares bounced off rising support zone 3 times, most recently a week ago.
• Now trading 203p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -25% from 2019 highs; +16% from 2019 lows; -14% year-to-date
• Analysts at Numis  (17 July) upgrade to buy 275p target price
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Tullow – An Example

Let’s say you like the Tullow range, you think it’s heading back towards 218p again. You decide to buy exposure to £10,000 worth of Tullow using a CFD, at the current price of 203p. To do this, you need £2,000.

Let’s assume Tullow rises back to 218p (+7.4%). Your profit would be £740, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Tullow falls % 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.