PFE pushes through key technical resistance level
Pfizer Inc. (PFE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
PFE finished the week -0.69% lower at 37.50 after gaining $0.24 (0.64%) today on low volume, outperforming the Dow Indu. (-0.04%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PFE as at May 22, 2020):
Friday's trading range has been $0.57 (1.54%), that's below the last trading month's daily average range of $0.85. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for PFE.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on April 24th, PFE gained 2.54% on the following trading day.
Buyers managed to take out the key technical resistance level at 37.38 (now S1), which is likely to act as support going forward. After having been unable to move lower than 37.05 in the prior session, Pfizer found buyers again around the same price level today at 36.96.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 38.20 where further buy stops might get triggered. As prices are trading close to May's high at 39.01, upside momentum could speed up should the market mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Pfizer. Out of 594 times, PFE closed higher 51.18% 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 61.28% with an average market move of 0.56%.