Want to hang onto something for a year? Check out GlaxoSmithKline (GSK). (August 03, 2016)
GSK
I want to talk about GlaxoSmithKline, GSK ( NYSE:GSK ). No, not the guy who used to run the IMF. Here’s why I want you to look at this: We have a 4.85, almost a 5 percent dividend yield, and it’s in a new uptrend. You look at the weekly chart, it’s been trending down forever it seems like. And then trending sideways for a more recent forever. And finally starting to move up. THIS IS NOT A TRADE. This is the kind of stock that you look at, you say, “Okay, GlaxoSmithKline ( NYSE:GSK ). Drugs, there seems to be a lot of that stuff going around. Coming out of a base.” I would say the near-term prior resistance was right here, 44ish. The 200-day moving average is this black line here. The stock came up above after having failed 3 different times.
This is just kind of a textbook reversal pattern. Rally up to here. The next low came back to test the 200-day moving average, that test lasted about a week. And Boom! Now it’s up to a higher high relative to this one. Not that extended, and you’re buying it because you get a 5 percent dividend. AND, because you’re probably going to get some capital appreciation. They don’t report earnings until the end of October, and the stock is working well. So my suggestion is, if you want something to HOLD for a while, this is a stock that works. This is a breakout here. I would hold the stock, plan on holding it for a year and I think you’re going to work out just fine. If it doesn’t work out for you then contact me next year and I will apologize.
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