Will Hikma break support, or will it rise again back to highs of 2000p?

• Hikma has support since mid-August, 3 bounces off support zone, most recently this week.
• Now trading 1685p (at time of writing).
• Will the pattern repeat, the shares climbing back towards 2000p?
• Shares -19.3% from 2018 highs; +107% from 2018 lows; +48.7% 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 2000p again. You decide to buy exposure to £10,000 worth of Hikma using a CFD, at the current price of 1685p. To do this, you need £2,000.

Let’s assume Hikma rises back to 2000p (+18.7%). Your profit would be £1870, 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.