A range trading opportunity for you?
Will Premier Oil break support, or will it rise back to 75.3p?
- 67-75p sideways channel since late Jan.
- Bounced from support around 67p. Now 68.3p (at time of writing)
- Will the pattern repeat itself, rising back to 75.3p?
- Shares -17% from 2019 highs; +11.9% from 2019 lows; +2.9% year-to-date
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Premier Oil – An Example
Let’s say you like the Premier Oil range, you think it’s heading back up to 75.3p again. You decide to buy exposure to £10,000 worth of Premier Oil using a CFD, at the current price of 68.3p. To do this, you need £2,000.
Let’s assume Premier Oil rises back to 75.3p (+10.2%). Your profit would be £1020, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Premier Oil falls 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.