Will NMC Health continue falling, or will it rise again back to 3765p November highs?

• NMC Health share price has fallen to as low as 3255p (-9.5%) today.
• Now trading at 3418p (at the time of writing).
• Shares are -21.8% from 2018 highs, +13.9% from 2018 lows; +18.4% year-to-date.
• Shares falling after broker Jefferies downgraded the healthcare company to Underpeform and cut the target price to 2940p (below 2018 lows).
• Recent share price range: Oct lows 3000p, Nov highs 3765p.
• Can the stock regain recent highs?
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading NMC Health – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards November high of 3765p again. You decide to buy exposure to £10,000 worth of NMC Health using a CFD, at the current price of 3418p. To do this, you need £2,000.

Let’s assume NMC Health recovers back to 3765p (+10.1%). Your profit would be £1010, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. NMC Health falls 4% and hits your stop-loss. Your loss would be £400.

This is provided for information purposes only. It should not be taken as a recommendation.