Stock of the day: Pfizer
03 February 2025
Today's focus is on Pfizer, which is showing signs of a potential major sell signal in the making. The technical setup indicates a bearish head-and-shoulders pattern, marked with a blue rectangle, that is already active and influencing sentiment. The stock recently broke below a key horizontal support, marked in yellow, and has since been attempting a bullish correction.
This correction has formed a wedge pattern, outlined by black lines, which led to a retest of the yellow support—now acting as resistance. Pfizer has bounced off this resistance, reinforcing the bearish sentiment. As long as the price remains below the yellow resistance, the outlook stays negative.
The next key move is crucial:
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If the price closes below the lower black line of the wedge today, it will confirm a sell signal, potentially accelerating further downside.
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On the other hand, if the price manages to close significantly above the yellow resistance, it would invalidate the bearish outlook and generate a buy signal, though this scenario seems less likely at present.
Traders should monitor today's closing price closely, as it will likely determine Pfizer's next major move.