GlaxoSmithKline: new share price analysis

21st September 2021 07:54

Independent analyst Alistair Strang studies the tea leaves, looking at likely targets for Glaxo shares.

When we previously reviewed GlaxoSmithKline (LSE:GSK) back in March, we provided criteria for movement to 1,524p. Guess what, the share topped out at 1,528p last month, a pretty accurate rise to target. It even closed a session at 1,525p, falling pretty firmly since.

Since achieving our 1,524p target, GSK share price has experienced quite vivid reversals, even managing to wander below the immediate 2021 uptrend.

The immediate situation isn’t particularly happy with the share price needing below 1,377p to continue a cycle to an initial 1,269p. If broken, we would hope for a solid rebound below 1,236p makes itself known. If opting for a speculative short position, we can nominate 1,442p as a potential stop loss level.

In the event the company share price somehow manages to close a session above 1,442p, some further hope for the longer term looks possible as, while we can anticipate a climb hesitating at 1,524p (or so) again, we’d now tend hope for continued movement to 1,632p. Secondary, if bettered, is a longer term 1,707p.

We can calculate higher than 1,707p for the future but, visually, there’s a heck of an expectation for a price stumble at such a level.

Source: Trends and Targets. Past performance is not a guide to future performance

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.

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