Chart of the Day: Premier Oil

Premier Oil really has been one of the stocks for the year to date, even judging it by the stellar recoveries we have seen for many of the plays in the resources space. The question now with the shares having more than tripled from the lows and with Crude Oil double its 2016 base, is whether there is more to come on the upside…

Premier Oil (PMO): Above 200 Day Line Targets towards 100p

Even before the big rally of the past couple of months it can be said that the turnaround at Premier Oil looked as though it could be something outstanding. This is because we were treated to an Island Day reversal for January 12^th, something which was also a more conventional Island Bottom reversal for the January / February price action. After that, February served up a higher low, with there being a series of higher lows within a rising trend channel in place ever since. The floor of the channel currently runs level with the 200 day moving average at 63p. Indeed, the main point to note in the recent past is the way support for Premier Oil has tended to come in at and around the 200 day line on several occasions. The ideal scenario now is that there will be no break back below the 200 day line ahead of a fresh upside test. Clearly, the main target over the next 1-2 weeks would be a retest of the main 80p resistance zone. A weekly close above this level opens up the possibility of a push to the top of the rising 2016 price channel as high as 100p. The timeframe on such a move is regarded as being as soon as the next 1-2 months.