AstraZeneca (LON: AZN) share price has been on the rise since the start of the month. After a pullback at the end of April 2023, the shares of the British drug maker have rebounded strongly. Consequently, the stock has turned green for the third consecutive week.
On Tuesday, most of the UK shares showed a negative price action as the FTSE 100 index slid by 31 points. However, AstraZeneca shares continued to show strength and closed the day after rising 0.58%. This also means that the shares are only 2.48% down from their all-time high.
The recent bounce in the shares of AstraZeneca plc started after the release of its quarterly earnings report. The report showed a 4% decrease in its quarterly revenue on a YoY basis due to a decreased demand for its Covid products. Excluding the Covid products, the revenue increased by a whopping 15% in the quarter.
The latest earnings report also showed that the drug maker invested 24% of its revenue in Research & Development. This left a positive effect on AstraZeneca share price, as the company had 178 projects in development till April 27. Consequently, analysts expect a 13% annual increase in earnings over the next five years.
Technical analysis of the LON: AZN chart on the daily timeframe reveals that the price is forming a rising wedge pattern. This pattern usually signifies a loss in momentum by the bulls after major price rallies. A breakdown below this pattern is considered very bearish.
AstraZeneca share price prediction will remain bullish as long as it remains above the bottom line of the wedge. In the coming days, I expect the shares to retest their recent all-time high of 12,348. This will also be a retest of the upper trendline of the wedge, which is acting as a resistance and may result in another rejection.
I’ll keep sharing my updated price outlook on LON: AZN & other stocks in my free Telegram group, which you’re welcome to join.
This post was last modified on May 16, 2023, 18:10 BST 18:10