New targets to track AstraZeneca's recovery
After a 25% fall in just a couple of months, shares in the drug have begun a fightback. Independent analyst Alistair Strang looks at the chances of further upside.
4th February 2025 07:23
by Alistair Strang from Trends and Targets
The market recently kicked out a little threat against AstraZeneca (LSE:AZN), a couple of breaks of the uptrend since 2020 effectively proving this trend line may not matter. It's surprising how many times these symptoms prove important - generally with 20:20 hindsight - but we do think they are worth commenting on, just in case. It's often the case "the market" knows or suspects something is coming, so perhaps extreme caution should be invoked.
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In the case of Astra, we'd advocate 10,080p as a sensible level to press the Red button and panic, achieving such a level exceeding the previous lows achieved by the share. It triggers a logic which permits reversals down to 9,629p with our very probable secondary, if broken, at 8,382p.
Importantly, overall this suggests an imminent cycle down to an eventual bottom at 6,989p, again a price level which makes a lot of sense as it matches the low of 2021, effectively undoing all the Covid inspired gains.Â
Perhaps the immediate efforts to inhibit AstraZeneca falling off a cliff appear above 11,438p, which should trigger gains to an initial 11,916p with our secondary, if beaten, at 12,746p. Achieving our first target wouldn't cancel out our drop potentials but a visit to our secondary would suggest our work on reversals was a waste of time.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.Â
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