Will Premier Oil turn, or will it continue to rise towards 108p?

• Breakout above 89p; Now trading 93p (at time of writing).
• Could they recover to prior highs of 108p?
• Shares -0.7% from 2019 highs; +53.5% from 2019 lows; +40% year-to-date
• 20 Mar: UBS reiterates Buy rating and 170p target; still attractive, discount to net asset value
• 20 Mar: Stifel upgraded to Buy with a 140p target
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Premier Oil – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 108p. You decide to buy exposure to £10,000 worth of Premier Oil using a CFD, at the current price of 93p. To do this, you need £2,000.

Let’s assume the Premier Oil trend continues to highs of 108p (+16.1%). Your profit would be £1610, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Premier Oil breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.

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