The share price of Pfizer ( PFE) has been trading sideways since the beginning of May. Prices have gotten tighter and tighter - high to low - and PFE has been trading around the 50-day moving average line. Are we ready for a breakout?
In this daily bar chart of PFE, below, we can see that trading volume has been relatively quiet since early May. The daily On-Balance-Volume (OBV) line has been neutral/flat but it is starting to quietly move higher. The Moving Average Convergence Divergence (MACD) oscillator is hugging the zero line but poised to quickly turn up or down from here.
In this weekly Japanese candlestick chart of PFE, below, we can see a mixed to positive picture. Prices are trading above the rising 40-week moving average line. The weekly OBV line is pointing up but the MACD oscillator has narrowed and could cross to the downside.
In this daily Point and Figure chart of PFE, below, we can see that a trade at $40.99 will be an upside breakout. This could open the way for a rally to the $55 area.
Bottom line strategy: I have no idea what could be the catalyst for a move to the upside but the charts and indicators appear ready for it. Traders could go long PFE at current levels and add to longs above $40.99. The $55 area is our first price target. Risk $38.
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