Stock of the day: Pfizer

Today we’re updating you on Pfizer, a company that needs no introduction. We previously wrote about Pfizer at the end of April, when the price had just finished forming the giant Head and Shoulders pattern. We pointed out a possibility for a major sell signal:

“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 at 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.”

We are gathered here today because the breakout did happen, but not straight away. May, was actually great for Pfizer, the price bounced from the neckline and went significantly higher. June on the other hand is terrible so far, and especially over the last three days.

In three days, ladies and gentlemen, Pfizer cancelled almost all its growth in May. What’s more is that yesterday, the price managed to break the crucial long-term support (green). We can call it a neckline, we can call it a lower line of the symmetric triangle, or a long-term up trendline. It doesn’t matter, what matters is that this support was broken.

The breakout also gives us a proper, long-term, sell signal. This sell signal will be cancelled, should the price comes back inside of the triangle, but chances for that are now limited.