BHP
Is this breakout a good trade for you?
Will BHP turn, or will it continue to rise towards highs of 1955p?
- Breakout above 1816p; Now trading 1836p (at time of writing).
- Could they recover to highs of 1955p?
- Shares -6.1% from 2019 highs; +18.2% from 2019 lows; +11.2% year-to-date
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Click to enlarge
Trading BHP – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 1955p. You decide to buy exposure to £10,000 worth of BHP using a CFD, at the current price of 1836p. To do this, you need £2,000.
Let’s assume the BHP trend continues to highs of 1955p (+6.4%). Your profit would be £648, 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. BHP 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.