Will Hikma break support, or will it rise again back to highs of 2087p?

• Hikma has support since mid-August, 4 bounces off support zone, most recently last week.
• Now trading 1700p (at time of writing).
• Will the pattern repeat, the shares climbing back towards 2087p?
• Shares -19% from 2018 highs; +107.75% from 2018 lows; +49.8% year-to-date.
• 19 Nov: Hikma launches Triazolam Tablets
• 8 Nov: Panmure says Hikma is sensible partner for Vectura’s respiratory ambitions.
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Hikma – An Example

Let’s say you like the Hikma  chart and you think the price is heading back towards 2087p again. You decide to buy exposure to £10,000 worth of Hikma using a CFD, at the current price of 1700p. To do this, you need £2,000.

Let’s assume Hikma rises back to November high of 2087p (+22.7%). Your profit would be £2270, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Hikma falls 9% and hits your stop-loss. Your loss would be £900.

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