Will Hikma continue falling, or will it rise again back to 1790p Feb highs?

• Hikma Pharma shares -8.5% from Feb highs.
• Bounced +1.8% from recent lows.
• 29 Jan: Pharma company launched new Mitomycin injectable drug.
• Now trades 1662p (at time of writing).
• Shares -7.8% from 2019 highs; +10.5% from 2019 lows; -2.7% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, 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 1790p. You decide to buy exposure to £10,000 worth of Hikma using a CFD, at the current price of 1662p. To do this, you need £2,000.

Let’s assume Hikma recovers back to this week’s highs of 1790p (+7.7%). Your profit would be £770, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Hikma 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.