Hikma Pharma
A range trading opportunity for you?
Will Hikma break resistance, or will it fall back to 1436p?
- 1436-1778p falling range since Nov; now 1722p (at time of writing)
- Will the pattern repeat itself, testing previous 1436p lows?
- Shares -17.7% from 2018 highs; +111.1% from 2018 lows; +0.6 year to date
- 29 Jan: Hikma launches Mitomycin for infection
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Click to enlarge
Trading Hikma – An Example
Let’s say you like the range, you think it’s heading back towards 1436p again. You decide to sell exposure to £10,000 worth of Hikma using a CFD, at the current price of 1722p. To do this, you need £2,000.
Let’s assume Hikma fall back to 1436p (-16.6%). Your profit would be £1660, 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 rises 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.