Pfizer (PFE) seemed to get all the attention yesterday when they announced that their two-dose Covid-19 vaccine trial showed a 90% effective rate. Pfizer partner BioNTech (BNTX) is credited for contributing the messenger RNA technology. Messenger RNA is above my pay grade so what about their charts?
In this daily Japanese candlestick chart of BNTX, below, we can see that prices have been in an uptrend the past 12 months. Prices are up more than five-fold in the past year. BNTX is trading above the rising 50-day moving average line and the limited 200-day moving average line.
Monday's candle pattern is red which tells us that despite the news prices closed below the opening. The trading volume started to increase back in March when the two companies agreed to develop the vaccine together.
The On-Balance-Volume (OBV) line moved up into July and then corrected before rising again. Overall the movement of the OBV line tells us that buyers of BNTX have been more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed to the upside yesterday for a fresh outright buy signal.
In this weekly Japanese candlestick chart of BNTX, below, we can see a positive picture. Prices are in an uptrend above the rising 40-week moving average line.
The weekly OBV line is rising and the MACD oscillator is bullish.
In this daily Point and Figure chart of BNTX, below, we can see that prices reached an upside price target of $112.
In this weekly Point and Figure chart of BNTX, below, we can see a longer-term potential price target in the $170 area.
Bottom line strategy: The best time to go long BNTX was back in March so now we can only suggest a less than perfect time and location. Aggressive traders who have dug into the fundamentals of this German based company could look to go long close to $105 risking below $90. The $170 area is the Point and Figure target.
