A range trading opportunity for you?

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

• The Petrofac trading range has developed since early April .
• Shares bounced off 536p support zone 5 times, most recently yesterday.
• Now trading 560p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -16.2% from 2018 highs; +41.8% from 2018 lows; +9.8% year-to-date
• 19 Oct: Petrofac-led consortium wins $4bn contract at Thai refinery project
• 30 Aug: Shares raised to Equalweight from Underweight at Morgan Stanley, target upped to 800p (from 650p)
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

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 560p. To do this, you need £2,000.

Let’s assume Petrofac rises back to 669p (+19.5%). Your profit would be £1,950, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Petrofac falls 6% and hits your stop-loss. Your loss would be £600.

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