Will GlaxoSmithKline turn, or will it continue to rise beyond 1545p?

• The chart shows the price action for GlaxoSmithKline since early December.
• The shares have broken above resistance at 1500p to trade 1545p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• 19 Dec: GSK agrees to form Consumer Health Joint venture with Pfizer and then de-merge/list it in 3 yrs
• Shares -12.2% from 2018 highs; +17.1% from 2018 lows; +16.1% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading GlaxoSmithKline – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 1648p. You decide to buy exposure to £10,000 worth of GlaxoSmithKline using a CFD, at the current price 1545p (at time of writing). To do this, you need £2,000.

Let’s assume the GlaxoSmithKline trend continues upwards to 1648p (+6.7%). Your profit would be £670, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. GlaxoSmithKline breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.