GlaxoSmithKline (GSK) has been climbing from its December low. There is some overhead resistance from 2016, but the current technical indicators suggest GSK can see further significant gains in 2017.
In this daily chart of GSK, below, we can see a bit of a roller-coaster ride since August, but since the November/December lows prices have gained strength. In January GSK rallied above the 50-day moving average and the slope of the average turned up in February. In late February GSK closed above the 200-day moving average line and it looks like its slope is also turning positive. The daily On-Balance-Volume (OBV) line has been trending upward since December and tells us that buyers of GSK have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been positive since it moved above the zero line in January.
In this weekly chart of GSK, below, we can see that prices have been making a large base since the middle of 2015. The key level on the upside is probably a close above $45 or $46 depending on how you decide to draw a neckline on the pattern. The weekly OBV line has been rising the past five months and is close to breaking above the 2015 high. The weekly MACD oscillator just moved above the zero line this month for an outright go long signal.
In this Point and Figure chart of GSK, below, we can see that a double-top breakout will happen when GSK trades up to $44. The consolidation patterns over the past two years gives us an initial upside price projection of $57.
Bottom line: We were bullish on GSK in late February and the charts and indicators have only gotten stronger. Go long GSK here and on strength. Use a sell-stop below $40 now.