GlaxoSmithKline: Key support at 1561p

GlaxoSmithKline and Sanofi, the two pharmaceutical giants, are discussing a 500 million pounds deal to supply the U.K. government with their potential coronavirus vaccine, reported Bloomberg citing people familiar with the matter. The UK is considering buying the vaccine if it shows convincing results in clinical trials scheduled to begin in September.  Sanofi, whose Pasteur Vaccines Division enjoys a solid reputation, particularly in the area of influenza, is currently working on two other projects.

From a chartist point of view, the stock price remains within a consolidation channel in place since April 2020. The daily Relative Strength Index (RSI, 14) is navigating around its neutrality area at 50%. The configuration is mixed. Prices need to stand above 1561p to maintain the short term bullish bias.  A push above 1749p would validate a new bullish signal and would open a path to see 1857p. Alternatively, a break below 1561p would call for a reversal down trend with 1490p and 1415p as targets.

Source: GAIN Capital, TradingView


Related tags: Equities Coronavirus

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