Will AstraZeneca turn, or will it continue to gain momentum toward new record highs?

• The chart shows price action since October.
• Currently trading close to all-time record highs at 6272p (as of the time of writing).
• AstraZeneca shares are on a strong 2018 momentum, +35.8 from 2018 lows, +22.5% year-to-date.
• Now less than 1% away from new record highs.
• Shares trading in a rising channel since February
• 12 Nov: US FDA decision to grant priority review for Lynparza cancer drug supports the uptrend.
• Shares in a weeklong uptrend (+9.5% in the last week). Will the momentum continue?

Click to enlarge

Trading AstraZeneca – An Example

Let’s say the trend 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 6272p. To do this, you need £2,000.

Let’s assume AstraZeneca trend continues to 6600 rising channel ceiling (+5.2%). Your profit would be £520, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% below the current price. AstraZeneca falls 3% and hits your stop-loss. Your loss would be £300.

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