Interactive Investor

Why confidence in AstraZeneca shares remains high

31st March 2022 07:14

Alistair Strang from Trends and Targets

The drug giant's shares have just hit a record high, but independent analyst Alistair Strang believes there could be more to come from the Covid vaccine maker.

Hopefully AstraZeneca's (LSE:AZN) share price shall continue to show improvement.

Back in 2020, flushed with success at being first to the market, Astra's share price experienced a spike to 10,120p. As the chart shows, the months following paid for this optimism, politicians throughout Europe actively sabotaging the companies efforts while hoping their national manufacturers could catch up.

All things considered, the entire affair was messy. The Astra vaccine was cheaper, easier to distribute, and from a personal viewpoint, effective.

Closing Wednesday 30 March at 10,160p, the share price now is confirmed in strong territory for the longer term. Even from an immediate perspective, it calculates with movement above 10,165p potentially triggering a nod in the direction of 10,846 next. We’ve a bunch of separate formula promoting this as a target level and, generally, when this happens, confidence is fairly high.

Our longer-term secondary target is slightly confusing as it demands the price close a session above 10,846p to become “real”.  Apparently above 10,846p could produce ongoing travel toward 11,906p, perhaps even 12,608p. This massive difference in target ambitions can be laid squarely at the feet of 20 July 2020 and the brief spike to 10,120p.

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

    To experience trouble, the share price value needs to retreat below 9,300p, such a movement threatening reversal to 8,500p initially with secondary, if broken, down at 7,098 and hopefully another bounce and another go at the future.

      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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