AstraZeneca PLC : A rally could take place
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 3,920 | GBX 0 | GBX 3,845 | -100% |
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.