Will Premier Oil continue falling, or will it rise again back to last week’s high of 76.2p?

• Premier Oil shares have fallen close to 23% from recent highs (7 Dec). Down as much as -7% today.
• Currently trading at 61.85p (at time of writing).
• Oil and oil services companies shares are down as WTI crude oil price fell below $50/barrel.
• Shares -55.75% from 2018 highs; currently trades at 2018 lows; -19% 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

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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 76.2p. You decide to buy exposure to £10,000 worth of Premier Oil using a CFD, at the current price of 61.85p. To do this, you need £2,000.

Let’s assume Premier Oil recovers back to recent high of 76.2p (+23.2%). 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.