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Home / Trade Alert / Buy – AstraZeneca (AZN)

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Buy – AstraZeneca (AZN) - 27 December 2017

Trade Parameters

  • Opening Price: 4958.5p
  • Stop Loss: 4900p (58.5p/1.2% below)
  • Profit Limit: 5140p (181.5p/3.7% above)
  • Reward vs Risk: 3.1x
  • CFD Margin: 5%

Observations – For

  • Bullish breakout
  • Potential bullish flag pattern
  • RSI bounced from pivotal 50 level
  • 100-day moving average proving supportive

Observations – Against

  • Hasn’t yet crossed 50-day MA
  • Momentum off best levels
  • Stochastics turning back from overbought
  • Late November highs of 5050p may become hurdle

Analyst Comments

Attractive technical set-up with bullish breakout and potential bullish flag pattern. US tax reform could aid companies with major US exposure, such as AZN, while provision to remove some aspects of Affordable Care Act (Obamacare) may aid pharmaceutical names. Steady stream of positive trials and stateside drug approvals proving supportive of recent rally.

Consensus is bullish on the one of the most closely watched UK 100 companies, with 87% of brokers suggesting to ‘Buy’ or ‘Hold’ the shares. The 12-month broker target of 5488p is well above our trade limit, while October highs resistance is 60p above our modest target.

Next Event: FY 2018 Results, 2 Feb

Latest Broker 12-Month Consensus:  61% Buy, 26% Hold, 13Sell (full breakdown on request)

Source: DowJones Newswires, Reuters News, Bloomberg  or Company Press releases

Broker Ratings & 12-Month Target Prices (Bloomberg)

4-month (daily); RSI + Momentum

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