Recently on Mad Money Jim Cramer sat down with Emma Walmsley, CEO of GlaxoSmithKline Plc (GSK) , the drugmaker with shares up 19% over the past year and a 4.3% dividend yield.
Walmsley said GlaxoSmithKline continues to see progress and momentum and is generating a lot of positive data for patients. The company is the leading provider of vaccines around the globe and Walmsley was especially proud of a new vaccine for shingles, a painful disease that affects nearly one in three people over the age of 50. GlaxoSmithKline's vaccine provides 95% protection and has already been administered to over 11 million patients.
Glaxo is also innovating in oncology with their acquisition of Tesoro, as well as with respiratory illnesses like COPD.
Let's check out the charts and indicators of this big pharmaceutical company.
In the daily bar chart of GSK, below, we can see that prices have been trending higher from late May and broke out of its sideways pattern in September. Prices are moving higher and trade above the rising 50-day moving average line and above the slower-to-react but rising 200-day moving average line. A bullish golden cross can be seen way back in March when the 50-day line crossed above the 200-day line.
The trading volume has been heavier since October telling us that more traders and investors have become involved in the stock. The daily On-Balance-Volume (OBV) line has been rising since July and tells us that buyers of GSK have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line in June for an outright go long signal and this indicator is still bullish and just crossed to the upside for a fresh go long signal.
In the weekly bar chart, below, we can see that GSK was in a much larger sideways trading pattern or consolidation pattern prior its upside breakout last year. Prices are above the rising 40-week moving average line.
The weekly OBV line has been rising and is close to making a new high. The weekly MACD oscillator turned bullish this past June and is still rising.
In this first Point and Figure chart of GSK, below, a potential upside price target of $53 is being projected.
In this second Point and Figure chart of GSK, below, we used weekly high/low data and the chart generated a potential price target of $74.
Bottom-line strategy: The charts of GSK, above, are all pointing higher. Traders should consider going long GSK or adding to existing longs on any near-term weakness. Risk a close below $46 while looking for $53 and potentially $74 as price targets.