PFE finds buyers at key support level
Pfizer Inc. (PFE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PFE ended the month 17.68% higher at 38.48 after losing $0.26 (-0.67%) today, notably underperforming the Dow Indu. (0.44%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PFE as at Jul 31, 2020):
Friday's trading range has been $0.89 (2.3%), that's slightly above the last trading month's daily average range of $0.80. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below 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 Hanging Man. The last time a Hanging Man showed up on Wednesday, PFE lost -1.32% on the following trading day.
After trading down to 37.86 earlier during the day, the market bounced off the key technical support level at 38.44 (S1). The failure to close below the support could increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 39.45 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Pfizer. Out of 466 times, PFE closed higher 53.43% 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 62.66% with an average market move of 0.59%.