Will Reckitt Benckiser continue falling, or will it recover to 6400p? (7%)

• Reckitt Benckiser is down 6% today (10th April)
• (10th April) Shares down as US Justice Department looks into their Suboxone opioid treatment marketing
• Can the stock recover 7% to 6400p
• Shares -8% from 2019 highs, +7% from 2019 lows; Flat year-to-date.
• Shares from RB are down by 6.2% today from which Indivior was spun out in 2014. Reckitt wasn’t charged but the indictment said the illegal marketing began before the spin off.
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Reckitt Benckiser – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 6400p. You decide to buy exposure to £10,000 worth of Indivior using a CFD, at the current price of 6000p. To do this, you need £2,000.

Let’s assume Reckitt Benckiser recovers back to 6400p (+7%). Your profit would be £700, 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. Reckitt Benckiser rises 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.