A range trading opportunity for you?

Will Petrofac break lower, or will it rise back again to 671p?

• The Petrofac range has developed since July.
• Bounced off 595p support zone 11 times. Now trading 600p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Analysts at Barclays (10 Oct) say Petrofac has reshaped itself and is heading back to a cash-positive balance sheet.
• Shares -11.6% from 2018 highs; +49.5% from 2018 lows; +17.8% year-to-date
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Petrofac – An Example

Let’s say you like the Petrofac range, you think it’s heading back towards 671p again. You decide to buy exposure to £10,000 worth of Petrofac using a CFD, at the current price of 600p. To do this, you need £2,000.

Let’s assume Petrofac rises back to 671p (+11.8%). Your profit would be £1,180, 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. Petrofac falls 5% and hits your stop-loss. Your loss would be £500.

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