Will Cairn Energy continue falling, or will it recover to 215p recent highs?

• Cairn Energy shares as lows as -18% from last week’s highs; -4% today.
• Announced delays in $1.4bn Indian tax claim.
• Arbitration panel unlikely too rule before late 2019.
• Now trades 187p (at time of writing).
• Shares -0.3% from 2019 highs; +25.6% from 2019 lows; +17.6% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Cairn Energy – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 215p. You decide to buy exposure to £10,000 worth of Cairn Energy using a CFD, at the current price of 187p. To do this, you need £2,000.

Let’s assume Cairn Energy recovers back to 215p recent highs (+14.9%). Your profit would be £1490, 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. Cairn Energy 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.