Will Premier Oil continue falling, or will it rise again back to September high of 128p?

• Premier Oil shares have fallen 31% from October’s 148p highs
• Crude oil prices are falling on the back of the strong USD (hawkish Fed) and abundant supply (high US oil inventories)
• Currently trading at 101p (at time of writing).
• Shares -28% from 2018 highs; +62.5% from 2018 lows; +32.8% year-to-date.
• Recent share price range: Oct lows 98p; Oct highs 147p.
• Can the stock recover to yesterday’s highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Premier Oil – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 128p. You decide to buy exposure to £10,000 worth of Premier Oil using a CFD, at the current price of 101p. To do this, you need £2,000.

Let’s assume Premier Oil recovers back to 128p mid-October levels (+26.7%). Your profit would be £2670, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Premier Oil falls 8% and hits your stop-loss. Your loss would be £800.

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