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by Koos van der Merwe
Glaxo Smith/Kline is a research-based pharmaceutical company that may be worth watching.
Position: Accumulate
Koos van der Merwe
Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.
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HEAD & SHOULDERS
Is Glaxo Smith/Kline Medicine For The Bull?
01/13/09 08:38:38 AMby Koos van der Merwe
Glaxo Smith/Kline is a research-based pharmaceutical company that may be worth watching.
Position: Accumulate
| On October 9, 2008, Glaxo Smith/Kline (GSK) announced that Fluviral was available to Canadian private customers for the 2008–09 influenza season. The stock price surged up from a low of $32.84 to a high of $40.37, eventually reaching a high of $40.47 by November 4 before following the general market correction and finding a low of $31.10 by November 21. |
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| FIGURE 1: GSK, DAILY. The stock price started rising as the general market rose to reach $37.95 by December 16. |
| Graphic provided by: AdvancedGET. |
| |
| As you can see on Figure 1, the share price started rising as the general market rose to reach $37.95 by December 16. From this level, the price fell to $35.41 by December 29. The pattern that formed is an inverse head & shoulder pattern offering a target of $47.66 (39.38 - 31.10 = 8.28 + 39.38 = 47.66). |
| The chart shows where the stock price broke above the neckline, rising to a high of $39.60 before the present correction. I would have bought as the price broke above the correction. Is the price a buy at present levels? The stochastic oscillator (8,10,3) is suggesting that the price is at overbought levels and that we could expect a correction to test the support line. Should this occur? And should the stochastic be oversold and suggest a buy, I would be a buyer, with a target of $47.66. This is a stock worth watching. |
Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.
| Address: | 3256 West 24th Ave |
| Vancouver, BC | |
| Phone # for sales: | 6042634214 |
| E-mail address: | petroosp@gmail.com |
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