Pfizer Stock Surges as Its Oral Weight-Loss Drug Challenges Ozempic

Here's what traders need to know.

Pfizer (PFE) was trading higher Monday on reports that its oral diabetes drug, referred to as PF-07081532, led to faster weight loss than weekly injections of Novo Nordisk's (NVO)  antidiabetic drug Ozempic, used also as an anti-obesity medication for long-term weight management.

Let's check out a few charts and indicators.

In this updated daily bar chart of PFE, below, I can see that prices have been in a downward trend since November. Prices trade below the declining 50-day moving average line and the declining 200-day line. Trading volume has been active in recent months and today's volume is heavy.

The daily On-Balance-Volume (OBV) line has been in a long decline but is starting to show a turn to the upside. The 12-day price momentum study shows higher lows from January for a bullish divergence. A slower decline in price for PFE is a sign of scale-down buying by longer-term investors. 

 

In this weekly Japanese candlestick chart of PFE, below, I can see that prices had declined down to potential areas of support (prior resistance) reading the chart from right to left. The weekly trading volume has been neutral and the weekly OBV line is still pointed down. The 12-week price momentum study shows us a slowing in the pace of the decline.

 

 

In this daily Point and Figure chart of PFE, below, I can still see a potential downside price target in the $36 area. A trade at $39.78 should turn this chart positive.

 

Bottom line strategy: A stock can change direction in a day, a key reversal day, but it may take PFE a little longer.

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