Instrument: GlaxoSmithKline plc (GSK)
Average Pattern Move: +5.95%
Timeframe: Feb 3 – Apr 29
Winning Percentage: 86.67%
Is GSK Entering a Seasonal Sweet Spot?
GSK has recently garnered attention due to GSK agreeing to buy US Cancer Biotech firm IDRx. GSK Plc will acquire US biotech IDRx for up to $1.15 billion, with $1 billion upfront and $150 million tied to milestones. IDRx’s experimental drug targets gastrointestinal stromal tumors, potentially offering the first major treatment breakthrough in 20 years for this type of cancer.
The deal highlights GSK’s growing focus on oncology, despite challenges in its vaccine sales. GSK has seen success with cancer drugs Ojjaara and aims to relaunch Blenrep, a blood cancer treatment. Announced at the JP Morgan investor conference, the agreement includes milestone payments and royalties to IDRx’s prior partners, including Merck KGaA.
This is ahead of a typically strong seasonal period. Between February 3 and April 29, GSK’s stock demonstrates consistent gains, making this a pivotal period for traders and investors.
Seasonal Strength
Over the last 15 years, GSK has shown a remarkable track record during this timeframe:
- Annualized Return: +28.12%
- Winning Trades: 13 out of 15 (86.67%)
- Average Return: +5.95%
The cumulative profit trend underscores consistent positive returns, supported by favorable seasonality. The seasonal chart highlights a strong upward trajectory during this period, suggesting that GSK could be poised for gains.
Technical Perspective
A look at GSK’s long-term price action reveals critical levels on the monthly chart. The chart highlights a significant monthly horizontal support zone around $32 where the stock has previously bounced back multiple times (in 2022, 2020, and 2010). This area coincides with the strong seasonality approaching, making it a level to watch.This seasonal pattern aligns with broader healthcare sector trends during the early spring, making GSK a stock to watch. Will it capitalise on historical gains? The coming months will provide clarity.
Sign up here for thousands more seasonal insights waiting to be revealed!
Trade risks
GSK’s ability to capitalize on recent acquisitions and pipeline developments remains a key factor.
Don’t Just Trade It – Seasonax It!
