Stock of the day: Pfizer

In today’s stock of the day, we’re coming back to Pfizer – a company which was having a great time during the Covid pandemic. It’s now a bit forgotten, but worry not, we can still find an interesting setup to trade here.

We’d previously mentioned Pfizer in July last year when the price was around 39 USD and we were at the end of the symmetric triangle pattern. We said:

“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.”

That’s the beauty of price action. You can be a bull or a bear but the price gives you signals, not your attitude. At least that’s what it should be like. That triangle ended up with an upswing. The first wave went to 51 USD and the second one to 61 USD, quite impressive right?

OK, we ‘re here today to discuss the most recent setup. The price is currently creating a giant Head and Shoulders pattern. The formation has a neckline, of course, which in the same time is a long-term up trendline (green). A breakout of that crucial support will give us a proper, long-term sell signal. As long as we are above that, buyers have hope but chances for a breakout are constantly increasing.