Is this trend a good trading opportunity?

Will Premier Oil turn, or will it maintain momentum beyond 145p?

• The chart shows Premier Oil price action since early September .
• Shares trading highest since July 2015.
• Shares +24.7% since September lows. Will this momentum continue towards May 2015 highs of 190p?
• Shares -2.4% from 2018 highs; +112.9% from 2018 lows; +84.9% year-to-date
• Currently trading at 141p (as of the time of writing).
• Oil companies are benefiting from higher oil prices amid global supply concerns

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Trading Premier Oil – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Premier Oil using a CFD, at the current price of 141p. To do this, you need £2,000.

Let’s assume Premier Oil trend continues to 2015 highs of 190p (+34.7%). Your profit would be £3470, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 6% below the current price. Premier Oil 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.