GSK share price struggles to maintain key tech support: will Glaxo hold up?

0

Glaxo Smithkline (GSK) share price has fallen 10% in the past month. However, robust support has so far avoided a collapse. The question is, will Glaxo continue to hold up if global stock markets continue to collapse?

Glaxo Smithkline has underperformed many of its biggest rivals over the past 18 months. Glaxo’s failure to produce an effective vaccine against Covid-19 caused it to lose ground to Moderna, Pfizer and AstraZeneca. As a result, in March of this year, the GSK share price was languishing at 1196p, 36% below the peak of 1,831.6p in February 2020. Glaxo had improved 28% by month-end. August, hitting a 9-month high of 1,528.8 percent. However, since then everything has been downhill for shareholders. Over the past two weeks, GSK has rebounded between 1377p and 1433p.

Glaxo Smithkline Price Forecast

The daily chart shows that the decline accelerated as the GSK share price collapsed in early September from a bullish trend channel. Subsequently, the stock price fell below the 50-day moving average at 1441p and 100 days at 1420p, although the crucial 200-day indicator at 1367.9 remains intact. If the price manages to maintain the 200 days, it could offer a silver lining to the bulls. However, if GSK slips below 1367.9p, that will mark a sharp deterioration in momentum, which will likely lead to increased sales.

If Glaxo loses 200 days of support, an extension of the support band between 1315p and 1335p seems likely. For now, the price is holding and therefore, until the support is broken, I am maintaining a neutral position. However, below 1367.9p the outlook turns bearish until the 200 DMA is recovered on a close basis.

GSK Stock Price Chart (Daily)


For more market information, follow Elliott on Twitter.



Source link

Share.

Comments are closed.