Novartis: continuation of the rebound

Market chart showing uptrend
Novartis, the Swiss pharmaceutical company, has entered into an agreement to acquire the US neuroscience group Cadent Therapeutics. It will receive an initial payment of $210 million, followed by payments of up to $560 million for a total of $770 million.

From a technical point of view, the stock price bounced off the lower end of a consolidation channel and is nearing a former gap area. The daily RSI (14) pushed above a declining trend line and is within its buying area (>50% and <70%). As long as 80 is support, readers may expect a continuation of the rise towards 81.8 and 82.6. 

Source: TradingView, GAIN Capital

Related tags: Equities

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