A clean bearish setup has emerged on Pfizer, aligning with the broader downtrend in the stock. The price action continues to show lower highs and lower lows, reinforcing negative sentiment and suggesting that sellers remain in control.
The recent bullish correction, marked with black lines, formed a flag pattern, which is a typical trend continuation structure. Since the flag emerged after a downswing, the expected outcome is another leg lower, in line with the prevailing trend.
Additionally, the flag pattern ended at a key horizontal resistance around $27, marked in green. The price failed to break above this level, confirming it as a strong resistance zone. The rejection from $27 further supports the bearish outlook.
Trading Scenarios:
-
Bearish confirmation: The price breaking below the lower boundary of the flag signals a continuation of the downtrend, likely leading to a significant drop in price.
-
Bullish invalidation: A break above $27 would indicate a false breakdown, shifting sentiment toward a potential reversal.
For now, with Pfizer failing at resistance and breaking key support, the stock appears poised for further downside in the coming sessions.