Will Tullow Oil turn, or will it continue to rise towards 273p?

• Breakout above 247p to trade 251p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 273p?
• Shares -1.6% from 2019 highs; +46.9% from 2019 lows; +39.9% year-to-date.
• 23 Apr: Oil shares higher after US ups sanctions pressure on Iran
• 17 Apr: RBS says Buy Tullow Oil if Shares Fall at 1Q Update
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Tullow Oil– An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 273p . You decide to buy exposure to £10,000 worth of Tulllow using a CFD, at the current price 251p (at time of writing). To do this, you need £2,000.

Let’s assume the Tulllow trend continues upwards to 273p (+8.7%). Your profit would be £870, 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.  Tulllow 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.