PFE dominated by bears dragging the market lower throughout the day
Pfizer Inc. (PFE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PFE ended Wednesday at 36.78 losing $0.18 (-0.49%) on low volume, underperforming the Dow Indu. (0.13%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 36.81, the share confirmed its breakout through the prior session low after trading up to $0.09 below it intraday.
Daily Candlestick Chart (PFE as at Sep 16, 2020):
Wednesday's trading range has been $0.59 (1.58%), that's slightly below the last trading month's daily average range of $0.72. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PFE.
Regardless of a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
After spiking up to 37.31 during the day, the market found resistance at the 20-day moving average at 37.31. After having been unable to move lower than 36.81 in the prior session, Pfizer found buyers again around the same price level today at 36.72. The last time this happened on September 2nd, PFE actually lost -2.15% on the following trading day.
PFE shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 37.54 where further buy stops could get activated. As prices are trading close to September's high at 37.82, upside momentum might accelerate should the share mark new highs for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Pfizer. Out of 237 times, PFE closed higher 58.65% 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 65.40% with an average market move of 0.90%.