Will Cairn Energy turn, or will it continue to rise towards 209p Nov highs?

• Breakout above 186p rising resistance to trade 192p (at time of writing).
• The ‘trend is your friend’. Will it continue towards 209.5p?
• Shares -1.3% from 2018 highs; +27.5% from 2018 lows; +28.6% year-to-date.
• 22 Jan: 2018 net production for Catcher & Kraken averaged 17.5K barrels/day.
• 22 Jan: Berenberg analysts say Cairn has one of the most attractive 2019 exploration programs.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Cairn Energy – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to . You decide to buy exposure to £10,000 worth of Cairn Energy using a CFD, at the current price 192p (at time of writing). To do this, you need £2,000.

Let’s assume the Cairn Energy trend continues upwards to 209.5p November highs (+9.1%). Your profit would be £910, 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. Cairn Energy breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.