Will Pfizer Shares Break Out or Reverse to the Downside?

Shares of pharmaceutical giant Pfizer (PFE) were last reviewed On October 31 where we wrote that “These four charts and indicators of PFE give me a mixed review. PFE’s chart correction this month along with the broader market average rally could be more short covering than new outright buying. I don’t I have no knowledge of what PFE will tell shareholders on Tuesday, so I will stand aside at this time.”

As things played out, prices continued to rise and reached a position where they were ready to either breakout of their June/July highs or reverse and move lower. Let’s check the chart again.

In this updated daily bar chart of PFE, below, we can see that the price has been bullish since the beginning of October. The price is now trading above the rising 50-day SMA and above the 200-day lower line.

The on-balance-volume (OBV) line is in a parallel upward trend and the moving average convergence divergence (MACD) oscillator is bullish.

In this weekly Japanese candlestick chart from PFE, below we can see a chart with some of the better technical signals. The price closed above the 40-week moving average line from the downside. The weekly OBV line has corrected in the last two months. The MACD oscillator has crossed to the upside for a covered shorts buy signal.

In this daily point and figure chart, below, we can see that the price has reached a price target in the $48 area.

In this weekly Point and Figure chart of PFE, we can see a potential $65 price target.

Bottom Line Strategy: PFE’s charts and indicators are mixed and show some upside potential but I have a bearish outlook for the broad market averages in Q1 2023. If I am correct about this I do not expect PFE to show independent price strength.

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