Will Hikma continue falling, or will it rise again back to 1705p Monday highs?

• Hikma share price -7% from Monday’s highs, but already bounced +2% from lows.
• 3 Jan:  Hikma announced a agreement with Beijing Sciecure, a leading Chinese pharma R&D company.
• 19 Dec: Hikma Pharma to join UK 100 index, replacing Shire.
• Now trading at 1610p (at the time of writing).
• Shares are down over -8% from 2019 highs, +2% from 2019 lows, -6% year-to-date.
• Can the shares 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 1705p. You decide to buy exposure to £10,000 worth of Hikma using a CFD, at the current price of 1610p. To do this, you need £2,000.

Let’s assume Hikma recovers back to this week’s highs of 1705p (+5.9%). Your profit would be £590, 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. Hikma 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.