AstraZeneca: technical support at 7121

AstraZeneca, the global biopharmaceutical firm, announced its acquisition of rare-disease US specialist Alexion Pharmaceuticals.

Charts (6)

AstraZeneca, the global biopharmaceutical firm, announced its acquisition of rare-disease US specialist Alexion Pharmaceuticals for $39 billion or $175 per share. Alexion shareholders will receive $60 in cash and 2.12 of AstraZeneca's shares for each share they hold. The transaction values Alexion at $175 per share, 45% above its closing price on Friday on Wall Street. This is the largest acquisition in the pharmaceutical sector since the beginning of the pandemic.

Separately, the Company reported that its Trixeo Aerosphere has been approved in the European Union (EU) for maintenance treatment in adult patients with moderate to severe chronic obstructive pulmonary disease (COPD).

From a chartist point of view, the stock price is under pressure within a bearish channel and is nearing its lower Bollinger boundary. The daily RSI (14) lacks downward momentum. Prices remain supported by the rising 100WMA currently at 7350. As long as 7121 is support, a rebound could take place.  A push above 8140 would open a path to see 8848. Alternatively, a break below 7121 would call for a bearish acceleration towards 6315 and 5871.

Source: TradingView, Gain Capital


More from Equities

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.