BP
Is this breakout a good trade for you?
Will BP turn, or will it continue to rise towards Sep highs of 600p?
- Breakout above 565p; Now trading 576p (at time of writing).
- Could they recover to Sep highs of 600p?
- Shares -0.7% from 2019 highs; +18% from 2019 lows; +2.5% year-to-date
- Oil prices hit 6 month highs due to tensions in Lybia
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading BP – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 600p. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 576p. To do this, you need £2,000.
Let’s assume the BP trend continues to highs of 600p (+4%). Your profit would be £400, 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 5% 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.