Pfizer (NYSE: NYSE:PFE) traded lower on Wednesday, after hitting resistance fractionally below the 43.20 barrier, which stopped the share from moving higher between July 17 and 26, 2019. Overall, though, it continues to trade above a tentative upside support line drawn from the low of Mar. 23, while the latest rally, initiated on Nov. 27 and paused on Tuesday, has confirmed a forthcoming higher high. All these technical signs paint a positive picture in our view.
If investors are interested to buy back Pfizer, then we could see a break above 43.20, something that could lead to the 44.60 zone, defined as a resistance by the high of July 3, 2019. Another break, above 44.60, could carry extensions towards the peak of Dec. 4, 2018, at 46.50.
Turning our gaze to the short-term momentum studies, we see that the RSI hit resistance near 70 and ticked down, while the MACD lies above both its zero and trigger lines, still pointing up. Although both indicators detect strong upside speed, the fact that the RSI turned down suggests that some further retreat may be in the works before the next leg north.
In order to abandon the bullish case, we would like to see a fall below 35.85. This would also take the stock below the aforementioned upside line and may initially target the low of Oct. 29, at 34.60. If that barrier doesn’t hold, the slide could continue towards the 33.10 barrier, marked by the low of July 9, where another break may pave the way towards the low of June 26, at 31.60.