How GlaxoSmithKline can reach new highs
17th May 2022 07:50
by Alistair Strang from Trends and Targets
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It doesn't seem long ago that Glaxo was being criticised for numerous failings as it was put in the shade by arch rival AstraZeneca. Things have changed, so Alistair Strang gives his view on possible next moves.
It is interesting that GlaxoSmithKline's (LSE:GSK) share price appears to be on the verge of becoming useful, almost at the point of challenging the pre-pandemic highs of 2020.
This is creating a fascinating scenario as now above 1,817p suggests imminent moves to an initial 1,841p. In the event such a level is exceeded, quite likely with the price trading around 1,798p at time of writing, our secondary works out at 1,870p and a new all-time high.
Quite coyly, we’ve chosen to show a longer-term 2,009p on the chart below as a viable long-term ambition, representing a level at which we’d suspect some hesitation.
For everything to go horribly wrong, Glaxo needs below 1,700p as this calculates with the threat of reversal to an initial 1,625p. At such a level, we’d hope for a bounce as our secondary works out at an uptrend breaking 1,406p.
At present, we’re inclined toward optimism for this share price.
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.
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