PFE unable to break through key resistance level
Pfizer Inc. (PFE) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, PFE ended the week -4.05% lower at 36.51 after losing $0.42 (-1.14%) today, strongly underperforming the Dow Indu. (-0.09%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 36.51 marks the lowest recorded closing price since October 24, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 36.89, the stock confirmed its breakout through the previous session low after trading up to $0.47 below it intraday.
Daily Candlestick Chart (PFE as at Feb 14, 2020):
Friday's trading range has been $0.62 (1.68%), that's slightly below the last trading month's daily average range of $0.68. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for PFE.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 36.30 (S1). Unable to break through the key technical resistance level at 37.01 (R1), the market closed below it after spiking up to 37.04 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on December 27, 2019, PFE lost -1.04% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Pfizer. Out of 230 times, PFE closed higher 58.70% 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 62.61% with an average market move of 0.74%.