Is this trend a good trading opportunity?

Will BP turn, or will it continue to gain momentum toward 650p Apr 2010 highs?

• The chart shows price action since early July.
• Currently trading at 600p (as of the time of writing).
• Shares trade fresh 2018 highs; +32% from 2018 lows; +14.7% year-to-date.
• Shares in 3-week uptrend (+13%). Will the momentum continue?
• Shares are rising thanks to Brent Crude oil price reaching 4-year highs of $85/barrel
• Goldman Sachs says (14 Sep) BP is likely to hit a “cash flow sweet spot” next year thanks to strong earnings and largest-ever project pipeline.
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading BP – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 600p. To do this, you need £2,000.

Let’s assume BP trend continues to 650p May 2010 highs. Your profit would be £830, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% below the current price. BP falls 3% and hits your stop-loss. Your loss would be £300.

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