Stock of the day: Pfizer

If you’ve followed our Stock of the Day series long enough, you’ll have noticed that one of our most favorite technical formations  is the symmetric triangle.

Symmetric triangles are great because they’re very reliable and trustworthy. What’s more, the signal that they give is usually very strong and the movement which happens after the breakout lasts for a long time. This formation is also relatively easy to spot on the chart.

That’s why I’d like to show you Pfizer’s chart. This a company that, after Covid, needs no introduction. The triangle here has been there since the beginning of May. A sideways trend continues until the time of writing, with the volatility getting lower every month.

We don’t have a breakout yet, so there’s no trading signal. However, I would like to take a minute of your time to warn you that the breakout is approaching so that you’re ready when it happens.

The way to trade it is pretty simple. One can think about buying once the price breaks the upper line of the triangle, and selling when the price breaks the lower line.