Will Petrofac break support, or will it rise back to 558p?

• Sideways channel 530-558p range since 8 Jan
• Bounced from support 4 times. Now 540p (at time of writing)
• Will the pattern repeat itself, rising back to 558p?
• Shares -21.0% from 2018 highs; +33.6% from 2018 lows; +13.2% year-to-date
• 7 Jan: Jefferies says Petrofac performance in 2018 hard to fault
• 18 Dec: Petrofac performing in Line with expectations, $5bn new orders
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Petrofac – An Example

Let’s say you like the Petrofac range, you think it’s heading back towards 558p again. You decide to buy exposure to £10,000 worth of Petrofac using a CFD, at the current price of 540p. To do this, you need £2,000.

Let’s assume Petrofac rises back to 558p (+3.3%). Your profit would be £330, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Petrofac rises 2% and hits your stop-loss. Your loss would be £200.

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