Will Pfizer Shares Break Out or Reverse to the Downside?

Let's review the charts and indicators.

Shares of pharmaceutical giant Pfizer (PFE) were last reviewed on October 31 where we wrote that "These four charts and indicators of PFE give me a mixed review. With the broad market averages rallying this month the improvement in the charts of PFE could be more short covering than new outright buying. I don't have any knowledge of what PFE will be telling shareholders Tuesday so I would stand aside at this point in time."

As things played out prices continued higher and have reached a position where they are poised to either breakout over their June/July highs or reverse and turn lower. Let's check the charts again.

In this updated daily bar chart of PFE, below, we can see that prices have rallied from early October. Prices are now trading above the rising 50-day moving average line and above the bottoming 200-day line.

The On-Balance-Volume (OBV) line is in a parallel upward trend and the Moving Average Convergence Divergence (MACD) oscillator is bullish.

 

In this weekly Japanese candlestick chart of PFE, below, we can see a chart with some better technical signals. Prices have closed above the 40-week moving average line which is bottoming. The weekly OBV line has improved the past two months. The MACD oscillator has crossed to the upside for a cover shorts buy signal. 

 

 

 

In this daily Point and Figure chart, below, we can see that prices reached a price target in the $48 area.

 

 

In this weekly Point and Figure chart of PFE, below, we can see a potential $65 price target. 

 

 

Bottom line strategy: The charts and indicators of PFE are mixed and show some upside potential but I have a bearish outlook for the broad market averages into the first quarter of 2023. If I am right about that I do not expect PFE to show independent price strength.

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