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Fan Yang

Astrazeneca (AZN) Trading at Key Support after Bullish Breakout and Pullback

We recently saw Astrazeneca $AZN break above a key long-term resistance, which opens up a bullish reversal scenario. However, we also noted that the market was fading the breakout, so we anticipated a pullback in AZN.

AZN Daily Chart

(click to enlarge)

Back at Key Support:
- The daily chart shows that price broke above a common resistance around 35-35.50. This resistance goes back to 2015 as you can see on the weekly chart below.
- After the breakout, price retreated sharply along with the overall stocks market. 
- However, the bullish breakout is still in play. 
- Price is holding above the 200-day simple moving average (SMA), which is a strong bullish continuation sign.
- Also, the RSI is holding above 40, another sign that the bullish momentum is still going. 
- Holding above $33 is therefore a strong sign that bulls are in control here, and if the overall market is NOT bearish, AZN should be bullish with upside towars a common resistance around $38. 
- The weekly chart below shows how price action has gone through a rounded bottom and could be on its way back up towards the 2014 high around 41. But 38 is also a common resistance to watch out for.

AZN Weekly Chart

(click to enlarge)