PFE finds support at 100-day moving average
Pfizer Inc. (PFE) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PFE finished the week -3.46% lower at 42.40 after losing $0.58 (-1.35%) today, notably underperforming the Dow Indu. (0.9%). Today's close at 42.40 marks the lowest recorded closing price since June 4th. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PFE as at Jul 12, 2019):
Friday's trading range has been $0.98 (2.28%), that's far above the last trading month's daily average range of $0.66. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PFE.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 42.01 during the day, Pfizer found support at the 100-day moving average at 42.12. The market closed below the 200-day moving average at 42.68 for the first time since June 13th.
Crossing below the lower Bollinger Band for the first time since April 22nd, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 43.46 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on April 16th, PFE lost -2.54% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling might move prices lower should the market test June's nearby low at 41.57.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Pfizer. Out of 39 times, PFE closed higher 64.10% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.10% with an average market move of 0.77%.