Pfizer (PFE) has been steadily dropping down in the rankings in the SIA S&P 500 Index Report since August of 2022, taking the shares from the green zone back down into the Red Unfavored Zone for the first time since August of 2021. Declines have accelerated in recent weeks with the shares plunging 173 positions in the last month to 306th place, including a drop of 22 spots yesterday.
Pfizer’s (PFE) technical situation continues to deteriorate Last summer, Pfizer snapped an uptrend line and completed a bearish descending triangle pattern with a breakdown below $45.00. Support came in near $41.00 and pushed the shares back up above $50.00. What now looks like a “last hurrah” rally topped out in a bearish Shooting Star cancel that failed near $55.00 resistance. Since then, the tide has turned back in favor of the bears. In recent weeks, declines have started to accelerate once again, particularly after the shares broke under $50.00 and their 50-day moving average.
Currently, Pfizer is testing $45.00 support where another breakdown would signal the start of a new downleg. Should that occur, initial support may appears near recent lows in the $40.00 to $41.00 area, then a measured $35.00. Initial resistance appears in the $49.00 to $50.00 area near recent breakdown points.
Like the overall US equity market, Pfizer (PFE) shares peaked about a year ago but following an initial pullback the shares spent most of 2022 trending sideways between $45.00 and $55.00. In recent months, volatility has increased with a double bottom breakdown in September reversing up into a Spread Triple Top by December. Since the start of this year, momentum appears to have turned downward once again with the shares reversing into an O column after a one-row breakout, aka a bearish Bull Trip, and falling back toward $45.00. A close below $44.50 would complete a bearish double bottom pattern and confirm the start of a new downswing with next potential downside support tests at the October low near $36.50 based on a horizontal count. Initial upside resistance appears near $49.10 based on a 3-box reversal, then the $50.00 round number.
With its bearish SMAX score falling to 4, PFE is exhibiting weakness against the asset classes.
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