A trading opportunity for you?
Will Premier Oil break support, or will it rise again back to 99p?
- Premier Oil has a support level at 65p since last November, bouncing 4 times, most recently last week.
- Now trading 70.4p (at time of writing).
- Shares -52.3% from 2018 highs; +8.3% from 2018 lows; -7.4% year-to-date.
- 15 Nov: Premier Oil year-to-date production +2.9%.
- Oil prices could get support from Saudi-Russia meeting this weekend
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Premier Oil – An Example
Let’s say you like the Premier Oil chart and you think the price is heading back towards 99p again. You decide to buy exposure to £10,000 worth of Premier Oil using a CFD, at the current price of 70.4p. To do this, you need £2,000.
Let’s assume Premier Oil rises back to 99p (+40.6%). Your profit would be £4062, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Premier Oil falls 10% and hits your stop-loss. Your loss would be £1000.
This is provided for information purposes only. It should not be taken as a recommendation.