AstraZeneca (AZN) share price jumped today as investors reacted to mixed information about the company. The stock rose to 7,087p, which is almost 6% above its lowest level this year.
What happened: Astrazeneca, the giant pharmaceutical company, has been in the spotlight lately. The most significant news was that the firm’s vaccine is becoming controversial around the world. In Europe, many countries have suspended the vaccine for causing blood clots.
Yesterday, Germany became the latest country to do so and there are signs that more countries will be hesitant to offer it to its citizens. Other countries that have suspended the vaccine are France, Spain, and the Netherlands.
Still, the vaccine represents a very small portion of AstraZeneca’s business. The company has even promised to sell the vaccine at cost.Also, in a statement, the World Health Organization (WHO) said that it continues to recommend the vaccine. Meanwhile, the company recently divested its shareholding of Moderna and refiled its $30 billion acquisition of Alexion.
The four-hour chart shows that the AZN share price has been bouncing back after falling to 6,740 in March this year. The stock has even moved above the middle line of the descending regression line. Notably, the shares have moved above the medium and shorter term moving averages.
At this stage, it is difficult to predict whether the AstraZeneca stock price will continue rising. This prediction will be clearer if bulls manage to push it above the 7,226 resistance level. If this happens, the next key level to watch is 7,500p, which is at the same level as the descending trendline. On the other hand, this trend will be invalidated if the AstraZeneca share price moves below 7,000p.
