A range trading opportunity for you?
Will Hikma break support or will it rise back to 1798p highs?
- Range since February; Bounced 3 times; Now 1611p (at time of writing)
- Will the pattern repeat itself, the shares rising to 1798p highs?
- Shares -12.9% from 2019 highs; +8.1% from 2019 lows; -6.1% year-to-date
- Forced selling from upcoming demotion to FTSE250 should now be complete
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Hikma – An Example
Let’s say you like the range, you think it’s heading back towards 1798p again. You decide to buy exposure to £10,000 worth of Hikma using a CFD, at the current price of 1611p. To do this, you need £2,000.
Let’s assume Hikma recovers to 1798p (+11%). Your profit would be £1100, 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. Hikma 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.