In today’s stock of the day, let’s focus on Pfizer (PFE) — a company that, after showing early signs of recovery at the end of September and beginning of October, is now sliding back into its long-term downtrend. The optimism that briefly lifted the stock at the start of the month has faded, and technicals show that the bearish structure remains firmly intact. The recent bounce now appears to be nothing more than a false breakout, a short-lived rally that failed to change the broader negative picture.
On the chart, we can clearly identify two key resistances that Pfizer managed to break above for a short time. Those areas, marked with orange color, were crucial mid-term supply zones — and the stock’s inability to hold above them confirmed that buyers lacked conviction. The price quickly fell back below both resistances, turning what initially looked like a potential bullish reversal into a classic bull trap. This false breakout, highlighted by the orange rectangle, sets the stage for renewed downward momentum.
Currently, the price is approaching a mid-term uptrend line, marked in blue, which has served as a key area of technical support throughout the recent consolidation. A break below this blue line would be highly significant — it would confirm a new wave of selling pressure and trigger a strong signal to go short. As long as Pfizer remains below the orange resistance and continues to press toward that blue support, sentiment will stay decisively negative, and traders should be prepared for further downside in the coming sessions.