A trading opportunity for you?
Will Hikma continue falling, or will it rise again back to 1926p Dec highs?
- Hikma share price fell 19% from Dec highs, and already bounced 4% from lows.
- Now trading at 1610p (at the time of writing).
- Shares are down over -23.6% from 2018 highs, +96% from 2018 lows, -6.1% year-to-date.
- Can the shares regain recent highs?
- 3 Jan: Hikma announced a agreement with Beijing Sciecure, a leading Chinese pharma R&D company.
- 19 Dec: Hikma Pharma to join FTSE 100 index, replacing Shire.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Hikma – An Example
Let’s say you feel that the stock is a bargain and you think could bounce back towards 1926p. You decide to buy exposure to £10,000 worth of Hikma using a CFD, at the current price of 1610p. To do this, you need £2,000.
Let’s assume Hikma recovers back to this week’s highs of 1926p (+19.6%). Your profit would be £1960, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Hikma falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.