Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make the BP share price more attractive?

• The chart shows the BP share price movements since early April.
• Shares -0.5% from 2018 highs; +32% from 2018 lows; +14.7% year-to date
• Redburn has upgraded BP to Buy (from Neutral).
• Consensus summary: 17 Buys, 10 Holds, 2 Sell; Average target: 641p (Source: Bloomberg).
• Current share price 599.5p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards April 2010 highs of 650p?

Click to enlarge

Trading BP – An Example

Let’s say you think that BP shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 599.5p. To do this, you need £2,000.

For the purpose of this example, let’s assume the BP share price rises to 650p (+8.4%). Your profit would be £840 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. BP shares continue their downtrend, they fall 3% and hit your stop-loss. Your loss would be £300.

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