Chart of the Day: AstraZeneca

The US Dollar may have pulled back slightly after the latest FOMC meeting, but Dollar earners such as AstraZeneca seem to be rising whatever the greenback does.

AstraZeneca (LON:AZN): Technical Target as High as 5,700p 

Like many a leading UK company which is doing well, I take the view that AstraZeneca could do even better if scooped up by a larger multinational player. Unfortunately, in many such situations one gets the feeling that the interests of the company, the board, and the shareholders are not necessarily perfectly aligned. Smith & Nephew (LON:SN.) could be regarded as a case in point as well. However, the cheaper Pound may render this gripe a thing of the past, as foreign companies can simply bid up to levels which are impossible to resist. In the case of AstraZeneca it is evident how there has been a significant turnaround since June 24, with the current price action showing an acceleration to the upside after an early July consolidation. This leads us to conclude that provided there is no end of day close back below the 10 day moving average / May price channel floor at 4,617p, there could be a journey to the top of the May channel with its resistance line projection currently pointing as high as 5,700p. The timeframe on such a move is as soon as the beginning of September.