A range trading opportunity for you?

Will Petrofac break lower, or will it rise back again to 669p?

• The Petrofac range has developed since late July.
• Bounced off 584p support zone 6 times, most recently today.
• Now trading 585p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Recently won a $4bn refinery project contract in Thailand (Petrofac’s share $1.4bn), supporting the bounce from support.
• Shares -13.11% from 2018 highs; +47% from 2018 lows; +17.7% 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 669p again. You decide to buy exposure to £10,000 worth of Petrofac using a CFD, at the current price of 585p. To do this, you need £2,000.

Let’s assume Petrofac rises back to 669p (+14.3%). Your profit would be £1,430, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Petrofac falls 10% and hits your stop-loss. Your loss would be £1,000.

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