GlaxoSmithKline PLC (LON:GSK) is definitely a company with fundamentals. That said, investors cannot buy at any price.
Investors need to learn how to interpret GlaxoSmithKline's market triggers. This analysis shows some key indicators that can tell you when to buy and when to sell.
The GlaxoSmithKline moving averages show a cyclical pattern characterized by extended bullish timeliness and a short-lived bearish trend. This implies that GlaxoSmithKline maintains an overall bullish trend.
Therefore, the way to win for investors is to understand when bullish momentum is building and when short positions are starting.
Bullish momentum for GlaxoSmithKline (GSK) set at $40.51
Source – TradingView
The RSI has been the best indicator of GlaxoSmithKline's action points. When a bullish trend ends, the RSI drops sharply even before the moving averages and MACD select the trend.
This often happens when the RSI approaches 70. The RSI drops until it reaches 40, at which point it rises sharply again, indicating the start of a new bullish trend.
The duration of a bullish trend is 1.5 times longer than the duration of a short trend. Almost always, momentum starts at key support levels.
GlaxoSmithKline is currently at a key support level of $40.50. Last week, the MACD histogram at -0.51 showed that the divergence is starting to converge. Both the MACD line and the signal line are bullish.
The candlestick pattern is trending higher this week. The combination of these indicators definitely suggests that GlaxoSmithKline is at the beginning of another bullish pattern, with shares rising above $50.
GlaxoSmithKline's fundamentals are strong, supporting overall price gains. GlaxoSmithKline is currently trading at $40.83, a key support level. The stock's bullish trend will continue for several weeks.
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