Stock of the day: Pfizer
21 August 2024
In today's stock of the day, let's take a closer look at Pfizer. Since December 2023, Pfizer has been trading within a rectangle pattern, indicating a sideways trend confined between two green lines. In the second half of July, we saw a surge in price, which led to the stock making new yearly highs and breaking out to the upside from this rectangle. However, this breakout turned out to be false, as the price failed to sustain the upward momentum and eventually dropped back inside the rectangle. This false breakout is highlighted by the orange lines.
Now that Pfizer is back within the rectangle, the outlook has turned negative. The stock is currently hovering above its last line of defense, the blue uptrend line. If this support is breached, it would generate a strong sell signal, with the target being the lower green line of the rectangle. Given this setup, my view on Pfizer is bearish, and I anticipate further downside if the blue support line fails to hold.