Will Premier Oil continue falling, or will it rise again back to May high’s of 102p?

• Premier Oil shares have fallen as mush as 14% from May highs.
• Currently trading at 87.8p (at time of writing).
• Shares -20.2% from 2019 highs; +44.8% from 2019 lows; +32.1% year-to-date.
• Can the stock recover to recent 102p highs?
• 16 May: Premier Oil is a Bargain says Berenberg
• 16 May: Premier Oil extends guidance range
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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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 102p. You decide to buy exposure to £10,000 worth of Premier Oil using a CFD, at the current price of 87.8p. To do this, you need £2,000.

Let’s assume Premier Oil recovers back to recent high of 102p (+16.1%). Your profit would be £1610, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Premier Oil 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.