Pfizer Analysis. 3 reasons to watch.Hello Everyone,
I hope you all had a good start to the New Year.
Pfizer (PFE) has been in the news a lot recently due to their vaccine. There may also be a few reasons to keep an eye on their stock price.
1) Support/Resistance- PFE ended the year with a pull-back. The price is currently being supported around $37. Price has hit resistance at $37 three times since May 2020. Price broke through the resistance in Nov 2020 and appears to be forming a new support in this range.
2) Fibonacci Retracement- This support/resistance area ($37) also coincides with a 61.8% retracement from the most recent low from Oct 2020 (see attached chart). Price has not closed below the 61.8% retracement as of writing.
3) MACD Divergence- Looking at the MACD/price chart, the MACD is diverging from the price. Hidden Bullish Divergence formed on the price chart/MACD at $37. This may further prove price has found a new support at $37.
I would personally like to see a close above the 50-day EMA prior to entering any trades so I will continue to watch closely.
Thank you for reading and please do your own research before trading
