In today’s Stock of the Day, let’s focus on Pfizer, where the recent bullish breakout attempt appears to be losing strength and could potentially turn into a false breakout — a situation that often signals a shift in momentum from bullish to bearish.
The chart setup shows a red symmetric triangle pattern, a formation that typically precedes strong directional moves. Recently, Pfizer managed to break out to the upside, piercing through two important resistance levels — the blue dynamic line and the green horizontal resistance. Initially, this move looked like the beginning of a proper bullish continuation, giving traders hope for a trend reversal after a prolonged period of weakness.
However, the optimism may have been premature. The price failed to sustain the breakout, and the move above those resistances now appears to have been false, as shown by the yellow zone marking the failed bullish attempt. Since then, the stock has slipped back below both the green and blue levels, erasing the earlier gains and raising concerns that the breakout was just a bull trap.
From a technical standpoint, the situation is becoming increasingly dangerous for buyers. If the price drops back inside the red symmetric triangle, that would effectively invalidate the bullish breakout and confirm a false move, turning sentiment decisively bearish. Such a development would likely trigger a long-term sell signal, as failed breakouts often lead to strong movements in the opposite direction.
As for now, the situation is cautious. Buyers need to defend current levels aggressively to avoid losing control of the market structure. If they fail, the false breakout could evolve into a broader reversal, opening the door for deeper declines ahead.