Stock of the day: GlaxoSmithKline

We’re starting the new week with an analysis of a GSK (GlaxoSmithKline). This will be the second time we mention this instrument on our portal. Previously, we were bullish as the price created a head and shoulders pattern but was unable to break the neckline that could trigger the sell signal. I considered that a bearish weakness.

It was a mistake. The price eventually dropped lower, but the breakout of the neckline (yellow) took GSK slightly more than a month, so they did struggle. The situation now is of course bearish.

The 17.1 (yellow) support is gone and so is the black line connecting the recent lower lows. On Friday, we even managed to use that line as a resistance, which confirms the bearish breakout.

Currently, GSK is on the 38,2% Fibonacci but I’m guessing this support may soon be gone as well. The sentiment here is definitely negative and will stay that way as long as we stay below the yellow resistance.