Will AstraZeneca turn, or will it continue to rise beyond 6300p?

• The chart shows the last 8 month’s price action for AstraZeneca
• The shares have broken above a resistance level at 6097p to trade 6280p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares rise back to the 2018 channel ceiling around 6600p?
• Shares -0.7% from 2018 highs; +35.8% from 2018 lows; +22.6% year-to-date.
• 12 Nov: US FDA grants priority review for Lynparza
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading AstraZeneca – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of AstraZeneca using a CFD, at the current price of 6280p. To do this, you need £2,000.

Let’s assume the AstraZeneca trend continues upwards to 6600p (+5.0%). Your profit would be £500, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. AstraZeneca breaks lower, falling 2% and it hits your stop-loss. Your loss would be £200.

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