Will Petrofac turn, or will it continue to break upwards beyond 473p?

• The chart shows the price action for Petrofac since early November.
• The shares have broken beyond falling highs resistance to trade 473p (at time of writing).
• The ‘trend is your friend’. Will the reversal continue?
• Petrofac provides engineering and construction services to oil & gas production and processing
• 18 Dec: Petrofac says performing in line with expectations, $5bn new orders
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Petrofac – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Petrofac using a CFD, at the current price of 473p. To do this, you need £2,000.

Let’s assume Petrofac’s trend continues to 602p (+27.3%). Your profit would be £2730, 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, at 602p. Petrofac trend breaks down, falling 6% and it hits your stop-loss. Your loss would be £500.

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