Pfizer Inc (US: PFE) has made some steady rise since March 2020 although there isn’t any new high yet. However, the technical recently suggest that the Pfizer is heading for a break out into a new high.

1. The resistance zone at US$39.49-US$40.28 has been tested twice. The selling which occur in mid-April to mid-June period was a strong selling but price managed to stay afloat above US$31.00, forming a potential rounding bottom. Price entered a second round of selling on mid-July but this time round the bearish momentum has weaken as price did not correct significantly and it is forming a pennant formation. As such, the higher lows has occur, indicating a potential uptrend ahead.
2. The rounding bottom and pennant resemble a potential cup and handle formation as well.
3. Price has been trending above the 50 and 200-day moving average, indication an uptrend.

CHART LEGENDS

Moving average

Red dotted line = 200-day moving average

Blue dotted line = 50-day moving average