The recovery for Pfizer Inc (US: PFE) in Mid-August seems to be a bearish corrective action based on the technicals. Wave analysis also suggests that the stock may resume its bearish sentiment soon.

1. Elliott wave analysis suggests that the stock is forming a minor 5 wave down.
2. 4^th wave is forming a bearish corrective flag formation.
3. Potential double top formation closing below the 50% retracement of wave 3.
4. RSI reading confirms the incoming bearish trend by making lower highs.
5. Bearish Marubozu candle confirms the previous bearish pin bar.
6. Prices fail to break the top of the 50% retracement level, suggesting that the bulls are losing steams. Therefore, prices may continue to fall further.

*Timeline of the technical call for PFE is between 1-3 weeks.

*Should price breaks beyond the 50% level for 2 consecutive periods, there will be a possibility of a renewed bullish action ahead.

CHART LEGENDS

Relative Strength Index

Period = 14

Red line = Overbought line at 60

Green line = Oversold line at 40