In today’s stock of the day, let’s take a closer look at Pfizer, which remains in a long-term downtrend that’s been unfolding with remarkable technical clarity since May 2024.
The chart shows a clear sequence of consolidation and continuation patterns—first a triangle, followed by another triangle, and now, a wedge. All of these formations are framed with black trendlines, and in each case, the pattern concluded with a breakout to the downside, reinforcing the dominant bearish sentiment.
Currently, the price is moving within a wedge. Just before this, we saw a failed attempt to break through a cluster of resistance levels. The price rejected the red downtrend line as well as a key horizontal resistance area, and is now gravitating toward the lower boundary of the wedge. A breakout below this wedge would be a strong technical sell signal, pointing to the continuation of the bearish trend and likely opening the path for new lows.
However, there is a bullish counter-scenario. Should Pfizer manage to break above a trio of resistance levels—the purple horizontal barrier, the red descending trendline, and the upper boundary of the wedge—that would effectively cancel the bearish setup. A daily close above all three would mark a major reversal signal and likely invite a wave of buying interest.
For now, the momentum favors the bears, but the wedge is tightening—and with that, a decisive move in either direction is likely just around the corner.