AstraZeneca’s share price was heavily penalized and is now in an oversold situation near to a solid support area.

In the recent months, the earnings estimates for the next year are regularly revised upward by analysts.

Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the GBp 3890 area should stop this trend and allow a technical rebound towards GBp 4076. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.

So as to make the most of a potential technical rebound of AstraZeneca, it seems opportune to open a long trade at current prices. A confirmation of this pattern would enable the security to reach the GBp 4205 resistance, with a potential gain of around 8%.
Investors should not insist under GBp 3890 and are better of placing a stop loss order under this threshold.