Will NMC Health continue falling, or will it rise again back to 3200p mid-December highs?

• NMC Health share price has fallen as much as -21% from mid-December highs.
• Healthcare shares suffered during recent US market volatility.
• Rising bond yields provided an attractive alternative.
• Share price bouncing since Friday, +7.3% from its lows.
• Now trading at 2677p (at the time of writing).
• Shares are -5% from 2019 highs, +4.5% from 2018 lows; -2.3% year-to-date.
• Can the stock regain recent highs?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading NMC Health – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards November high of 3200p again. You decide to buy exposure to £10,000 worth of NMC Health using a CFD, at the current price of 2677p. To do this, you need £2,000.

Let’s assume NMC Health recovers back to 3200p mid-December highs (+19.5%). Your profit would be £1950, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. NMC Health falls 7% and hits your stop-loss. Your loss would be £700.

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