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

• Premier Oil shares have fallen as low as -17.6% from April’s highs.
• Currently trading at 92.1p (at time of writing).
• Apr 16: Premier Oil Zama Field Could Beat Expectations: Berenberg — Market Talk
• Shares -15.1% from 2019 highs; +54% from 2019 lows; +40.5% year-to-date.
• Can the stock recover to recent 109p highs?
• 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 109p. You decide to buy exposure to £10,000 worth of Premier Oil using a CFD, at the current price of 92.1p. To do this, you need £2,000.

Let’s assume Premier Oil recovers back to recent high of 109p (+18.3%). Your profit would be £1830, from your initial investment of £2000.

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.