Will Premier Oil continue falling, or will it rise again back to November high of 109p?

• Premier Oil shares have fallen over 38% from October’s 147p highs
• Crude oil prices are falling for the 12th consecutive session
• OPEC projected weaker 2019 oil demand and  there is abundant supply (high US oil inventories)
• Currently trading at 91.1p (at time of writing).
• Shares -38% from 2018 highs; +39.6% from 2018 lows; +18.3% year-to-date.
• Recent share price range: Nov highs 109p; now trading at Oct-Nov lows.
• Can the stock recover to November highs?
• Source: Dow Jones, Bloomberg, FT, Company News

Click to enlarge

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 109p. You decide to buy exposure to £10,000 worth of Premier Oil using a CFD, at the current price of 91.1p. To do this, you need £2,000.

Let’s assume Premier Oil recovers back to 1098p November levels (+19.6%). Your profit would be £1960, 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.