Is this trend a good trading opportunity?
Will Premier Oil turn, or will it continue to rise to 109p Nov highs?
- Shares +20% in 1 week.
- Broken above 2019 highs at 81p.
- Now trading 86p (at the time of writing).
- Will the positive momentum continue to 109p Nov highs?
- Shares trade at 2019 highs; +43% from 2019 lows; +30.5% year-to-date.
- 12 Mar: Berenberg says Premier Oil’s debt should fall by another $220m in 2019
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Premier Oil – An Example
Let’s say the trend 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 86p. To do this, you need £2,000.
Let’s assume the Premier Oil trend continues to 109p Nov highss (+26.7%). Your profit would be £2670, 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 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.