Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make the AstraZeneca share price more attractive?

• The chart shows the AstraZeneca share price movements over the last 2.5 months.
• Guggenheim Securities starts coverage of AstraZeneca with a Buy and 7018p target.
• Consensus summary: 20 Buys, 7 Holds, 5 Sell; Average target: 6180p (Source: Bloomberg).
• Current share price 5678p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 6084p October highs?
• Shares -5.8% from 2018 highs; +26.9% from 2018 lows; +10.9% year-to date

Click to enlarge

Trading AstraZeneca – An Example

Let’s say you think that AstraZeneca shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of AstraZeneca using a CFD, at the current price of 5678p. To do this, you need £2,000.

For the purpose of this example, let’s assume the AstraZeneca share price rises to 6084p (+7.1%). Your profit would be £710 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. AstraZeneca shares continue their downtrend, they fall 3% and hit your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.