Will GlaxoSmithKline continue falling, or will it rise again back to 1648p recent highs?

• GlaxoSmithKline share price has fallen over 7% in 2 days
• Now trading at 1502p (at the time of writing).
• Shares are down over -9.1% from 2018 highs, +21.2% from 2018 lows, +13.7% year-to-date.
• Shares falling after GSK said it would spend $4.16bn to buy cancer-focused drug company Tesaro.
• Can the shares regain recent highs?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading GSK – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 1648p. You decide to buy exposure to £10,000 worth of GSK using a CFD, at the current price of 1502p. To do this, you need £2,000.

Let’s assume GSK recovers back to recent highs of 1648p (+9.7%). Your profit would be £970, 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. GSK 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.