Will Petrofac turn, or will it continue to fall towards 376p?

• Breakdown below 441p to trade 419p  (at time of writing).
• The ‘trend is your friend’. Will it continue down towards 376p?
• Shares -25.3% from 2019 highs; +11.6% from 2019 lows; -12% year-to-date.
• 18 Apr: Shares drop on reports Iraq Ministry ends negotiations
• 1 Apr: Moody’s withdraws ratings on Petrofac for business reasons
• 25 Mar: Petrofac struggling under gaze of SFO says Berenberg
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Petrofac – An Example

Let’s say the breakdown appeals to you, you think it’s likely to continue to 376p . You decide to sell exposure to £10,000 worth of Petrofac using a CFD, at the current price 419p (at time of writing). To do this, you need £2,000.

Let’s assume the Petrofac trend continues down towards 376p (-10.2%). Your profit would be £1020, 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. Petrofac breaks higher, rising 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.