The Pfizer Inc. stock (NYSE: PFE) has been in a sliding mode since last Thursday when it hit resistance at 43.05. However, the slide was stopped once again near the 41.65 level, which prevented the stock from drifting lower on October 1st and 6th as well. Overall, the stock continues to trade below the downside line taken from the high of September 7th, which keeps the short-term outlook negative. However, in order to get confident on a trend continuation, we would like to see a dip below 41.65.
A decisive break below that barrier would confirm a forthcoming lower low and may initially target the 40.30 hurdle, defined as a support by the inside swing high of July 16th. If investors are not willing to buy near that price either, then we could experience declines towards the 38.90 area, which acted as a temporary floor for the stock between June 18th and July 8th.
Taking a look at our short-term oscillators, we see that the RSI moved lower, but ticked up from slightly above 30, while the MACD, already negative has just fell below its trigger line. Both indicators detect downside speed, which is enhances the case for further declines in this stock, but the fact that the RSI has ticked up adds credence to our choice of waiting for a dip below 41.65.
The move that could change the short-term picture to positive is a rebound and a break above 43.05. This will not only confirm the break above the pre-mentioned downside line, but also a forthcoming higher high. The bulls may then get encouraged to push the action towards the high of September 30th, at 44.10, or the peak of September 23rd, at 44.70. If they don’t stop there, we could see them aiming for the 45.45 area, near the high of September 15th and the inside swing low of September 1st.
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