We last looked at Pfizer (PFE) on October 26 and wrote that, "Ahead of Pfizer's earnings... the charts suggest that investors are not positioned for an upside move." We noted that PFE showed a Point and Figure target of $42.
Well, we now have earnings behind us and Monday's announcement that Pfizer's Covid-19 vaccine has progressed further.
Let's check the charts again.
In the updated daily bar chart of PFE, below, we can see the price action before Monday's morning's announcement. Prices weakened into early November. The slopes of the moving averages were negative and the On-Balance-Volume (OBV) line was at a new low. The Moving Average Convergence Divergence (MACD) oscillator is just below the zero line.
In the weekly bar chart of PFE, below, we can see a mildly positive picture. Prices are above the 40-week moving average line but this slope is negative.
The weekly OBV line shows improvement from September and the MACD oscillator is above the zero line and the two moving averages that make up the indicator are on top of each other.
In this Point and Figure chart of PFE, below, we used daily close-only price data with a traditional even-dollar scaling. Here the software is projecting a potential price target of $50.
Bottom-line strategy: PFE is going to gap higher Monday morning. Fundamental and technical analysts will all be writing updates. If you have a long position in PFE from lower levels -- great. I would recommend raising stops to $35. Resistance might be encountered above $42 but $50 is now the Point and Figure target.
