Yesterday, one of the stocks that took the spotlight during the US trading session was Pfizer Inc. (NYSE: PFE). Reports came out that Pfizer, together with the German BioNTech (NASDAQ:BNTX), had positive results from their early testing of a possible coronavirus vaccine. According to some sources, the trial involved 45 people, who were given each a various dose of the “vaccine” or a placebo. The two companies are expected to go ahead with the safety and efficacy trial in the second half of July, subject to regulatory approval, of course. It is believed that the next step could involve around 30000 people.
The technical picture tells us that yesterday, PFE opened with a huge gap to the upside, however, closer to the end of the trading session, the stock declined somewhat. The initial push higher helped the share price to rise above its short-term upside support line taken from the high of May 29th. Even if the stock does correct a bit lower, as long as it continues to float somewhere above the 32.87 zone, marked by the high of June 30th, that may keep new investors interested in playing their part in the life of the stock.
As mentioned above, if PFE declines a bit, but remains above the previously-discussed 32.87 hurdle, that could keep the buying interest elevated for a while. The share price may then accelerate towards the 33.74 obstacle, or even to yesterday’s high, at 34.49, which might temporarily halt the uprise. That said, if the buyers are still feeling confident, a break of yesterday’s high would confirm a forthcoming higher high, this way clearing the way towards the 35.67 level, marked by the low of June 8th and the high of June 11th.
Our oscillators, the RSI and the MACD, are somewhat in support of the above-discussed scenario. The MACD is pointing higher and sits above its trigger line, despite still running below zero. The RSI, although it remains above 50, points to the downside, which may come in line with the idea of a small setback, before another uprise.
We may abandon the upside scenario if the price falls back below the 32.23 hurdle, marked by the low of June 30th. That could make new buyers worried a bit, as such a move may clear the path towards lower areas. PFE might then travel to the lowest point of June, at 31.61, a break of which would confirm a forthcoming lower low and could set the stage for a slide to the 30.67 level. That level is marked near the high of March 25th and near the low of March 27th.
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