Will Hikma Pharma continue falling, or will it recover to its previous 1850p highs?

• Hikma Pharma shares dropped by 9% from previous high of 1850p.
• Price keeps breaking daily lows
• Now trades 1690p (at time of writing).
• Shares -8.3% from 2019 highs; +13.7% from 2019 lows; -1.1% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

Click to enlarge

Trading Hikma Pharma – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 1850p. You decide to buy exposure to £10,000 worth of Hikma Pharma using a CFD, at the current price of 1695p. To do this, you need £2,000.

Let’s assume Hikma Pharma recovers back to 1850p last week’s highs (+8.6%). Your profit would be £910, 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 Pharma 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.