Novartis: continuation of the rebound

Novartis, the Swiss pharmaceutical company, has entered into an agreement to acquire the US neuroscience group Cadent Therapeutics.

Uptrend 2

Novartis, the Swiss pharmaceutical company, has entered into an agreement to acquire the US neuroscience group Cadent Therapeutics. It will receive an initial payment of $210 million, followed by payments of up to $560 million for a total of $770 million.

From a technical point of view, the stock price bounced off the lower end of a consolidation channel and is nearing a former gap area. The daily RSI (14) pushed above a declining trend line and is within its buying area (>50% and <70%). As long as 80 is support, readers may expect a continuation of the rise towards 81.8 and 82.6. 

Source: TradingView, GAIN Capital


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