Pfizer (PFE) is one of nine companies that are working to develop a Coronavirus vaccine. The company has said they could have the vaccine by the end of October.
The stock from the late 2018 appears to have declined in an Elliott Wave corrective pattern known as a Double Zigzag. The rally from the 2020 bottom could be a very bullish series of one’s and two’s up. A move above the 2020 high at 39.45 could be a third of a third up, if so, the stock could quickly reach into the 50’s.
Near term there’s a low risk opportunity to buy the stock. Assuming PFE is above its recent bottom of 35.45 on 09/18/20 – buy PFE.
Use 35.40 as a stop loss level for half the position.
Use 33.90 as a stop loss for the other half. 33.90 is a .70 retrace of the rally from 31.61 to 39.45. Usually .618 retrace provides strong support/resistance. A decisive break of .618 could open the door for a decline to 31.61.
A strategy to add on to the PFE position will be discussed in a future post – assuming the second stop loss level has not been reached.