A viewer on my Livestream Friday brought to my attention that Pfizer NYSE:PFE is coming off a major low (COVID Low) and has done a pullback to the 50% of the Impulse Move off said low. This is why I love doing Livestreams and having a trading community... idea crowdsourcing!
I like these setups especially as the S&P 500 and many stocks within it are making new 52 Week highs leaving many wondering "what's a good reward/risk at this point?"
The pullback on the Weekly bring price to the 50% of what I call an "Impulse Move" off the low: the first major reaction to confirm that price is respecting a low. See the Daily chart below for a lower timeframe view:
I would not want to hold the position if price breached the major low. My first Target would be the 50% Retracement of the Bearish trend at 40.32. This sets up a proper 3 to 1 Reward/Risk Ratio. I will likely express this trade with shares purchased but may seek to buy Calls as well.
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Well I'll be darned! Got a opening spike right down to 28.02... I did not miss it after all!
The stock has value. For me there is no risk to buy now or below 28 since you have more than average dividends anyway. So you have dividends or stock goes up AND dividends ))). But my expectations are bullish, similar to "norok"
heavy_assault
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do u think it'll make a double bottom at $26?
ositrades
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Ended the day on a doji candle. 28.52 seems to be the resistance to break in the short term, if this is looking to go up. Still indecisive I would say. 4hr MACD is just at the nook of crossover of signal - I guess tomorrow will tell which way it goes.
ositrades
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I see this going down to about 23.2 area, if the descending channel pattern is completed. Conversely, until it breaks the downward resistance line, the trend is still downwards.
norok
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@ositrades, A fair assessment. Channels can be useful when price is traversing levels but the COVID low is a major level that hit and so far held. We shall see!
heavy_assault
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@ositrades, u can look at it that way, but i think about it this way: it rapidly more than recovered the gap down in december. this shows to me the bad news is already in the price, and it looks cheap fundamentally too. im hoping for a double bottom at $26
But my expectations are bullish, similar to "norok"