AstraZeneca: technical support at 7121

AstraZeneca, the global biopharmaceutical firm, announced its acquisition of rare-disease US specialist Alexion Pharmaceuticals.

Charts (6)

AstraZeneca, the global biopharmaceutical firm, announced its acquisition of rare-disease US specialist Alexion Pharmaceuticals for $39 billion or $175 per share. Alexion shareholders will receive $60 in cash and 2.12 of AstraZeneca's shares for each share they hold. The transaction values Alexion at $175 per share, 45% above its closing price on Friday on Wall Street. This is the largest acquisition in the pharmaceutical sector since the beginning of the pandemic.

Separately, the Company reported that its Trixeo Aerosphere has been approved in the European Union (EU) for maintenance treatment in adult patients with moderate to severe chronic obstructive pulmonary disease (COPD).

From a chartist point of view, the stock price is under pressure within a bearish channel and is nearing its lower Bollinger boundary. The daily RSI (14) lacks downward momentum. Prices remain supported by the rising 100WMA currently at 7350. As long as 7121 is support, a rebound could take place.  A push above 8140 would open a path to see 8848. Alternatively, a break below 7121 would call for a bearish acceleration towards 6315 and 5871.

Source: TradingView, Gain Capital


More from Equities

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.