In mid-April, Pfizer Inc stock (NYSE: PFE) experienced a sharp sell-off, which drove the price heavily into the negative territory for the year. But since then, PFE managed to climb back up and test the yearly opening price at 43.13. Given that the stock continues to trade above its short-term upside support line taken from the low of April 18th, there is a good chance it may continue drifting in the northern direction. That said, before examining higher areas, we would like to see a clear break above one of our key resistance zones first.
As mentioned above, in order to aim for higher levels, we would need to wait for a clear break above the 43.30 barrier, marked by the highs of April 5th and June 11th. Such a move would confirm a forthcoming higher high and the price could climb to the 43.80 obstacle, a break of which may send the stock to the 44.20 hurdle, marked by the low of December 13th. PFE might stall around there, or even retrace back down a bit. But as long as the share price remains above the aforementioned upside line, we will class any move lower as a temporary correction. This could give some new investors an opportunity to join in and drive the stock higher, potentially bypassing the 44.20 mark and testing the 44.90 zone, which is the high of the same December 13th.
Alternatively, if the previously-mentioned upside line breaks and the price falls below the 42.45 hurdle, marked by the high of May 28th and also yesterday’s low, this could raise concerns about PFE’s upside potential, at least in the short run. The stock could then re-visit the 41.90 obstacle, a break of which may lead the share price further down, potentially aiming for the 41.25 area, marked by the lows of May 17th, 20th and 29th.
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