Trade of the Day

Pfizer, Inc. (NYSE: PFE)

(Current Price: US$39.86) – TECHNICAL BUY

Buy price: US$39.86     Stop loss: US$38.40     Take profit: US$44.00    

The price has pulled back to the downtrend channel support at US$39.30 which is also confluent with a previous swing low support formed at this level in October 2021. Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicators are also displaying bullish divergence as higher lows were formed while price made a lower low into the support recently, which provides a bullish signal. We could see a retest of the US$44.00 resistance level, which is confluent with the swing highs formed in February this year.

Expected timeline of the trade is 4-8 weeks from the date of report issuance.