In a Real Money column on Monday, Jim Cramer said as bond yields plummet and investors reach for yield, they must first ask themselves whether that yield is worth the risk. Drilling down in the Dow Jones Industrial Average, Cramer looked at Pfizer Inc. (PFE) .
Let's check out the charts of PFE.
In the daily bar chart of PFE, below, we can see that prices have been under pressure since July. Unlike the broader market, which saw steep declines last month, PFE has been in a steep decline since the middle of January. The slopes of the 50-day moving average line and the 200-day moving average line are negative.
The On-Balance-Volume (OBV) has been moving sharply lower to a new low the past two months. This weak OBV line tells us that sellers of PFE have been more aggressive.
The 12-day price momentum study shows lower lows so far this year and thus telling us that the pace of the decline has not slowed. Without a bullish divergence I would not look for a sustained reversal pattern.