Will GlaxoSmithKline turn, or will it continue to fall towards 1429p?

• Twin breakdown to trade 1515p  (at time of writing).
• The ‘trend is your friend’. Will it continue down towards 1429p?
• Shares -5.8% from 2019 highs; +6% from 2019 lows; +1.6% year-to-date.
• 2 May: Innoviva asthma inhaler meets primary endpoint in trial
• Shares weak since Q1 results at the beginning of the month
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading GlaxoSmithKline – An Example

Let’s say the breakdown appeals to you, you think it’s likely to continue to 1429p . You decide to sell exposure to £10,000 worth of GSK using a CFD, at the current price 1515p (at time of writing). To do this, you need £2,000.

Let’s assume the GSK trend continues down towards 1429p (-5.6%). Your profit would be £560, 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. GSK breaks higher, rising 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.