Is this breakout a good trade for you?

Will Tullow Oil turn, or will it continue to break upwards beyond 250p?

• The chart shows the last 3 month’s price action for Tullow Oil .
• It has today broken above a resistance line at 244p.
• The ‘trend is your friend’. Will it continue?
• Tullow should benefit from currently elevated oil prices amid
• Canaccord (17 Sept) upgraded the shares to Buy (from Hold) as Tullow getts back on the exploration track

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Trading Tullow Oil – 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 Tullow Oil using a CFD, at the current price of 250p. To do this, you need £2,000.

Let’s assume Tullow Oil’s trend continues to May highs of 279p (+11%). Your profit would be £1100, 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. Tullow Oil’s trend breaks down, falling 5% 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.