Stock of the day: Pfizer
17 May 2024
The Pfizer (PFE) stock chart is showing promising signs of a bullish reversal, highlighted by a triple bottom formation marked in yellow. This pattern signifies a strong support level, with the price bouncing off it three times, indicating that buyers are consistently stepping in at this level. In May, Pfizer's price successfully broke through the neckline of this triple bottom pattern, marked with a green line. This breakout has propelled the stock to its highest levels since mid-January, suggesting renewed bullish momentum.
Currently, Pfizer is experiencing monthly highs, reinforcing the validity of the triple bottom formation. As long as the stock price remains above the green neckline, the bullish scenario is in play, providing a strong buy signal for traders. This level now acts as a crucial support; maintaining above it could lead to further gains. Conversely, if the price falls back below the green line, it would negate the triple bottom pattern and signal a potential sell-off, indicating a failed reversal attempt.
Looking ahead, a reasonable target for Pfizer based on this bullish breakout is the 23.6% Fibonacci retracement level. This target aligns with a typical retracement level in technical analysis, providing a potential upside for the stock. Traders should monitor price movements closely, particularly around the green neckline, to confirm the ongoing bullish trend or to identify any signs of a reversal. The current setup offers a favorable risk-to-reward ratio, making it an attractive opportunity for investors.