Pfizer Nearing Resistance

This sites  09/17/20 post “Pfizer Bullish Opportunity” noted that Pfizer’s (PFE) near term daily pattern appeared to be a developing bullish Elliott Wave series of ones and twos.  Subsequently PFE has rallied, however the deep decline that bottomed on 11/16/20 has probably changed the pattern.  The deep drop into 11/16/20 now appears to more likely be an Elliott Wave Double Zigzag.  This is a corrective pattern and implies the rally from the 03/23/20 bottom could be retraced.

From a standard technical analysis perspective, the 11/09/20 move up on PFE’s vaccine announcement illustrated weak bullish commitment.  Near-term profit taking should have been much less – leading to a shallower decline.

The 09/17/20 post speculated PFE could reach the fifty-price range. The decline after 11/09/20  greatly reduces the chances of PFE reaching that zone. 

The daily chart of PFE courtesy of Trading View illustrates the stock is nearing potential resistance at the November 2018 peak of 44.05.

Daily Stochastic has reached the overbought zone.  PFE is expected to receive FDA approval of its Coronavirus vaccine as soon as 12/10/20. This could be a “sell the news” situation.

Traders are holding long a half position from the recommended  buy at the open of trading on 069/18/20.   *** NOTE *** PFE had a stock spin off  of the Vitara common stock on 11/13/20 which adjust PFE’s stock price.  The adjustment reduced the PFE stock price by 2.06.  The 09/18/20 entry price is now 34.87 

At the open of the 12/09/20 trading session sell half of the PFE position.  This is one quarter of the original position. 

Updates of PFE will be posted when necessary. 

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

One thought on “Pfizer Nearing Resistance

  1. Thanks, Mark, for this most recent guidance based on your technical expertise. This big pharma company has certainly been in the headlines lately, especially today!

    Like

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