Will Premier Oil break lower, or will it rise back again to 135p?

• The Premier Oil range has developed since May.
• Bounced off 98.75p support zone 2 times, most recently this week.
• Now trading 105.4p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -26.5% from 2018 highs; +66% from 2018 lows; +38% year-to-date.
• Premier Oil had strong first-half results in August and is set to publish a trading update on 15 November.
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Premier Oil – An Example

Let’s say you like the Premier Oil range, you think it’s heading back towards 135p again. You decide to buy exposure to £10,000 worth of Premier Oil using a CFD, at the current price of 105p. To do this, you need £2,000.

Let’s assume Premier Oil rises back to 135p (+28.6%). Your profit would be £2860, 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 falls 5% and hits your stop-loss. Your loss would be £500.

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