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Home / Breakouts / Premier Oil

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Premier Oil

Is this breakout a good trade for you?

Will Premier Oil turn, or will it continue to break upwards beyond 80p?

  • The chart shows the price action for Premier Oil since late October
  • The shares have broken above a resistance line at 76.5p to trade 78p.
  • The ‘trend is your friend’. Will it continue?
  • Shares -48.5% from 2018 highs; +38.4% from 2018 lows; +17.2% year-to-date
  • 7 Dec: Premier Oil production in November, December tops forecasts
  • Oil prices are rebounding from their pre-Christmas lows
  • Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Premier Oil– An Example

Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Premier Oil using a CFD, at the current price of 78p. To do this, you need £2,000.

Let’s assume Premier Oil’s trend continues to November highs of 109p (+40%). Your profit would be £4000, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Premier Oil‘s trend breaks down, falling 5% and it hits your stop-loss. Your loss would be £500.

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

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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