Will Hikma continue falling, or will it rise again back to 1927p recent highs?

• Hikma share price -14% from Tuesday’s highs, retracing most of last week’s gains.
• 19 Dec: Hikma Pharma to join UK 100 index, replacing Shire.
• Now trading at 1689p (at the time of writing).
• Shares are down over -16% from 2018 highs, +115.8% from 2018 lows, +48.5% year-to-date.
• Can the shares bounce off early December support and regain recent highs?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Hikma – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 1927.5p. You decide to buy exposure to £10,000 worth of Hikma using a CFD, at the current price of 1689p. To do this, you need £2,000.

Let’s assume Hikma recovers back to this week’s highs of 1927.5p (+14.1%). Your profit would be £1410, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Hikma falls 7% and hits your stop-loss. Your loss would be £700.

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