Saxo Group Videos

Neighbour: Shorting GSK as pharma stocks catch a cold

Joe Neighbour has been tracking GlaxoSmithKline, a big pharma stock that seems to be in a worsening condition.

Joe explains that; "A number of stocks are also showing signs of fatigue. The pharmaceutical stocks are of particular interest and following the underperformance seen by GlaxoSmithKline yesterday, it's these I've targeted for some attention.".

Joe also points out that the FTSE fell at the 50% retracement level with many stop losses taken out before settling around the 6250 level.

On the charts there's the underside of a Bearish Flag pattern, and a Top pattern which completed in August, Joe now sees a rally to the neckline of the pattern, together with a Bearish Engulfing candle on the daily charts resistance line

Joe plans to sell at market.

Stop: GBP 14.05

Target: GBP 11.50

https://www.tradingfloor.com/about/niird

01:18 minutes
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