Will Hikma break support, or will it rise again back to 2000p?

• The Hikma range has developed since late August, bolstered by rising support.
• Bounced off support zone 5 times, and 5 times off rising support .
• Currently trading 1706p (at time of writing)
• Will the pattern repeat itself, testing previous highs?
• Shares -18.4% from 2018 highs; +109.4% from 2018 lows; +50.7% since end-17.
• 2 Dec: Hikma plants sold to Investor Group
• 19 Dec: Hikma replaces Shire in UK 100
• 19 Nov: Hikma launches Triazolam Tablets
• 8 Nov: Panmure says Hikma is sensible partner for Vectura’s respiratory ambitions:
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Hikma – An Example

Let’s say you like the range, you think it’s heading back towards 2000p again. You decide to buy exposure to £10,000 worth of Hikma using a CFD, at the current price of 1706p. To do this, you need £2,000.

Let’s assume Hikma recovers back to 2000p (+17.2%). Your profit would be £1720, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Hikma falls 5% and hits your stop-loss. Your loss would be £500.

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