The proximity with the GBp 355.4 resistance could renew the bearish movement.

Fundamentals on Premier Oil remain extremely fragile. The company's market capitalization discounted of liabilities represents almost 2.96 times its sales, which is part of worst odds. Analysts revised downwards the EPS of the group and that announces important falls to come in terms of profitability and a slowdown in their activity. Moreover, the debt is growing year after year.

After a bullish period on latter sessions toward the midterm resistance at GBp 355.4, prices may consolidate on this area and a return to the 20-day moving average is expected in the next sessions. Indeed, the stock is on a pertinent resistance area combined with a downward trend, which should stop upward movement of the last trading sessions.

Most active investors could open short positions on Premier Oil at the current levels. The target will be set at GBp 335, thus a potential gain of 6%. A stop loss should be placed at GBp 360.5.