Will Premier Oil turn, or will it continue to rise to October levels of 120p?

• Shares +40% in a month
• Now trading 102p (at the time of writing)
• Will the positive momentum continue to 120p?
• Shares trade 2019 highs; +56% from 2019 lows; +28% year-to-date.
• 7th Apr: Management given pay boost as shares bounce back.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

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 102p. To do this, you need £2,000.

Let’s assume the Premier Oil trend continues to 120p (+17%). Your profit would be £1700, from your initial investment of £2,000.

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.