Will stopping the AstraZeneca vaccine jeopardize recovery?
The AstraZeneca Covid-19 vaccine has faced a series of troubles, as since the beginning it has been involved in controversies not only in its production and distribution, but also in the effectiveness in immunity and the possible side effects.
A few weeks ago, the problems between the European Union and the United Kingdom erupted over its distribution, based on the accusations of a breach of contract by the pharmaceutical company, as only 10% of the promised vaccines been delivered. Now, a new controversy arose due to the suspension of the vaccination process by several countries after some people have had health problems after receiving this dose.
Austria, Denmark, Italy, Norway, Iceland, Estonia, Latvia, Lithuania, Luxembourg, Romania, Spain and Germany have all recently announced that they are suspending this process in a preventative manner until the circumstances of the problems have been looked into.
This new setback not only jeopardizes the reputation of this company, but can also jeopardize the long-awaited recovery in the face of the summer months, which could once again damage the tourism sector. For this reason, the European Union is looking for new alternatives that could lead to the approval of the Russian vaccine by the authorities.
Despite these problems, it seems that optimism is still in the markets, since today’s latest ZEW investment confidence data in Germany announced a better than expected results in the current situation and future expectations. This comes after last February, when the ZEW confidence index was slightly lower than expected.
Technically speaking, AstraZeneca's trend is clearly bearish following a channel formation after reaching highs on July 20 above $ 60 per share even after being one of the companies that are distributing the long-awaited vaccine. In any case, despite the bad news, in the British session, the price of AstraZeneca is being positive with increases of over 3%, with the pre-opening also positive in the United States.
This downtrend was reinforced by the triple crossing of moving averages, so while the price is not able to reverse this situation and exceed its average of 200 sessions, we cannot expect it to be able to make an attack on the upper band of said channel.
Source: Admiral Markets MetaTrader 5. AstraZeneca daily chart. Data range: from December 21, 2019 to March 15, 2021. Prepared March 16, 2021 at 1:05 p.m. CET. Keep in mind that past returns do not guarantee future returns.
Price evolution in the last 5 years on the London Stock Exchange:
- 2020: -3.7%
- 2019: 29.5%
- 2018: 14.7%
- 2017: 15.4%
- 2016: -3.9%
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