Will Premier Oil continue falling, or will it rise again back to May high’s of 100p (+47%)?

• Shares down 32% from May highs; down 2% today
• Currently trading at 68p (at time of writing).
• Shares -38.5% from 2019 highs; +11.7% from 2019 lows; +1.9% year-to-date.
• Can the stock recover to recent 100p highs (+47%)?
• 16 May: Premier Oil a bargain, says Berenberg, after guidance extended
• Shares down on lower oil price 
• 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 100p. You decide to buy exposure to £10,000 worth of Premier Oil using a CFD, at the current price of 68p. To do this, you need £2,000.

Let’s assume Premier Oil recovers back to recent high of 100p (+47%). Your profit would be £4700, 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.