Royal Dutch Shell
A trading opportunity for you?
Will Royal Dutch Shell continue falling, or will it rise again back to 2412p this week’s highs?
- Royal Dutch Shell fallen over 6.5% this week, -1% today.
- Oil prices are under pressure from strong USD and lower demand.
- Now trades 2254p (at time of writing).
- Shares -7% from 2019 highs; currently trades near 2019 lows; -3.5% year-to-date.
- Can the stock recover to recent highs?
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Royal Dutch Shell – An Example
Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 2412p. You decide to buy exposure to £10,000 worth of Royal Dutch Shell using a CFD, at the current price of 2254p. To do this, you need £2,000.
Let’s assume Royal Dutch Shell recovers back to 2412p this week’s highs (+7%). Your profit would be £700, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Royal Dutch Shell falls 4% and hits your stop-loss. Your loss would be £400.
This is provided for information purposes only. It should not be taken as a recommendation.