Will IQE continue falling, or will it rise again back to 67.6p last week’s highs?

• IQE share price -17% from last week’s highs after Apple announced a rare sales warning.
• IQE manufactures chip architecture and is sensitive to global Tech sector weakness.
• Shares already bounced back over 5% from yesterday’s lows.
• 7 Jan: IQE appointed Tim Pullen (ex ARM Ltd) as new CFO.
• Now trading at 57.9p (at the time of writing).
• Shares are down over -16.4% from 2019 highs, +1% from 2019 lows, -8% year-to-date.
• Can the shares regain recent highs?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading IQE – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 67.6p. You decide to buy exposure to £10,000 worth of IQE using a CFD, at the current price of 57.9p. To do this, you need £2,000.

Let’s assume IQE recovers back to 67.6p last week’s highs (+16.75%). Your profit would be £1675, 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. IQE 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.