AstraZeneca Has the Potential to Rally High at the Start of 2021
With AstraZeneca rolling out their COVID-19 vaccines in places all around the world, investors are slowly observing its stock price over at Wall Street if it has the potential to soar to new heights.
The UK has also started distributing the vaccines to the public to start the week and their markets bounced-off in reaction to the roll out.
— BBC Breaking News (@BBCBreaking) January 4, 2021
AstraZeneca said that it aimed to supply up to 100 million doses as part of its agreement with the UK government.
Over in the Philippines, there has also been reports that Ayala Corp is planning to buy 450,000 doses of AstraZeneca vaccines worth P120 million donating half of the doses to the government.
Expect Either A Dip or A Breakout In Stock Prices
With all these news taken into account, it looks like we are going to view AstraZeneca’s price chart with cautious optimism.
This is because as per the technical analysis for this stock, AstraZeneca ($NASDAQ:AZN) is still below its Daily EMA 200 and currently acting as a dynamic resistance in the bigger picture.
However, there has been subtle signs of reversals in the lower timeframes, particularly the hourly, which could be an opportunity for short-term market players.
If the trading participants for this week see these developments as an optimistic driver for AstraZeneca, then we might expect a rally taking place once the bell rings in Wall Street with a short term play of up to 65.
Another possible catalyst in the near future could be the roll out of the AstraZeneca vaccines in the US since there have been reports that they might approve the doses this coming April.
As always, set your expectations and learn to manage your risks and keep your emotions in check as we start another trading year.
Featured Image by Gerd Altmann/Pixabay