Good support taken at channel....volume breakout ..may go long..Keep SL on closing basis below channels upper line
GLAXO trade ideas
glaxo--book profittrend line resistances with a stop of 1702 if closes above 1700 cover your shorts as we may target 1800
GLAXO - Good to go longGLAXO
CMP 3180
Stop 2700
Target 3800 plus
Weekly chart:
Moved out of a brief consolidation zone with good volumes.
Possibility of momentum taking the stock towards 3800 plus high.
GlaxoSmithKline - Exit - 15-20 % Downside RiskGlaxoSmithKline is heading lower to 1800-1900 levels in the coming months. It"s best to exit the stock and invest your money in one of our recommendations. Stay positive and make money.
Glaxo SmithKline (GSK) Pharma – What's Next? – 9/20/2016Preaching for patience by setting the examples ;) Roughly 6 months ago we published this piece on technical analysis of Glaxo SmithKline Pharmaceutical Stock. ( bombaybulls.com )It was mentioned clearly in that post that buying the stock near 3600 ( it was trading near that price in March, 2016 ) and hoping for it to reach 4000 might be a gamble !
Six months forward and we are back to 2800. At that time we were relying on 3000 - 3200 range and few short term trades did materialize but nothing substantial. Here comes a crucial part about technical analysis which helps you determine whether to trust on a support / resistance level and up to what extent ! There is no easy answer for that because it requires both expertise and experience.
So now it looks like the one and half year old range has finally broken to the downside and it will more likely to test the next lower range support area near 2400 - 2600 in coming sessions. Again we are in wait and be patient mode until good opportunity arises to grab it near the above mentioned support area. Here one thing we would like to mention that in general equity market is looking rich ( but who cares about valuation these days ! ;) ) and as a good student of history we would like to be very cautious. Because things happen when they are least expected in stock market. Currently everybody is in buy the dip mode but if not tomorrow then some day after tomorrow it will stop working for sure. Most pharmaceutical stocks are beyond stratosphere these days and the day of reckoning will of course come. Thus, even at 2400 - 2600, we will look for trading opportunities rather than long term holding opportunities. Of course, you never know for sure but grab with hand over fist moment doesn't materialize until there is full blown mayhem and we get the stock at 1/3 of today's price !
