Will Hikma turn, or will it continue to rise beyond 1875p?

• The chart shows price action for Hikma since August
• The shares have broken above resistance at 1845p
• Currently trading at 1870p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -11.8% from 2018 highs; +126.4% from 2018 lows; +65.3% year-to-date.
• 27 Nov: Hikma announces injectable licensing agreement
• 19 Nov: Hikma launches Triazolam tablets
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Hikma– An Example

Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Hikma using a CFD, at the current price of 1870p. To do this, you need £2,000.

Let’s assume the Hikma trend continues to 2050p Aug highs (+9.6%). Your profit would be £960, 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 breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.

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