Will Premier Oil break support, or will it rise again back to 147p highs?

• Premier Oil has a support level at 98p since mid-May, bouncing 3 times, most recently on Friday .
• Now trading 104.35p (at time of writing).
• Shares -32.6% from 2018 highs; +52.3% from 2018 lows; +36.9% 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

Click to enlarge

Trading Premier Oil – An Example

Let’s say you like the Premier Oil chart and you think the price is heading back towards 147p again. You decide to buy exposure to £10,000 worth of Premier Oil using a CFD, at the current price of 104.35p. To do this, you need £2,000.

Let’s assume Premier Oil rises back to 147p (+40.8%). Your profit would be £4087, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Premier Oil falls 7% and hits your stop-loss. Your loss would be £700.

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