The Pfizer Inc. stock (NYSE: PFE) traded lower on Wednesday, after hitting resistance fractionally below the 43.20 barrier, which stopped the share from moving higher between July 17th and 26th, 2019. Overall, though, it continues to trade above a tentative upside support line drawn from the low of March 23rd, while the latest rally, initiated on November 27th and paused on Tuesday, has confirmed a forthcoming higher high. All these technical signs paint a positive picture in our view.
If investors are interested to buy back Pfizer, then we could see a break above 43.20, something that could lead to the 44.60 zone, defined as a resistance by the high of July 3rd, 2019. Another break, above 44.60, could carry extensions towards the peak of December 4th, 2018, at 46.50.
Turning our gaze to the short-term momentum studies, we see that the RSI hit resistance near 70 and ticked down, while the MACD lies above both its zero and trigger lines, still pointing up. Although both indicators detect strong upside speed, the fact that the RSI turned down suggests that some further retreat may be in the works before the next leg north.
In order to abandon the bullish case, we would like to see a fall below 35.85. This would also take the stock below the aforementioned upside line and may initially target the low of October 29th, at 34.60. If that barrier doesn’t hold, the slide could continue towards the 33.10 barrier, marked by the low of July 9th, where another break may pave the way towards the low of June 26th, at 31.60.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2020 JFD Group Ltd.