The Pfizer Inc. (NYSE: PFE) stock opened with a large positive gap yesterday, following headlines that the company’s coronavirus vaccine candidate, developed in cooperation with Germany-based BioNTech SE, was found to be more than 90% effective in preventing the virus. That said, after hitting resistance at 41.40, the stock pulled back and, at the time of writing, it is trading slightly below the key barrier of 39.15. However, overall, the stock continues to trade above the upside support line drawn from the low of March 23rd and thus, we would consider the broader picture to be positive.
We believe that even if the retreat continues for a while more, the bulls may regain control from near the 38.20 barrier, marked by the high of November 4th, or from near the aforementioned upside support line. They may push the price back up for another test near the 41.40 zone, which if broken, may allow extensions towards the 43.20 area, which prevented the stock from moving higher between July 17th and 26th, 2019.
Looking at our daily oscillators, we see that the RSI runs above 50 and points up, while the MACD lies slightly above both its zero and trigger lines, also pointing north. Both indicators detect strong upside speed and support the notion for another positive leg in this stock.
In order to abandon the bullish case and start examining the case of a deeper decline, we would like to see the price dropping below the low of October 29th, at 34.60. Such a move would not only take the share below the pre-mentioned upside line, but it would also confirm a forthcoming lower low on the daily chart. We may then see declines towards the 33.10 obstacle, marked by the low of July 9th, the break of which could extend the slide towards the low of June 26th, at 31.60.
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