$PFE Missed Our Previous Entry? Now Is Your 2nd Chance To Get InThis is an update for an ongoing $PFE position announced in an earlier post on October 2nd titled "$PFE Expect A Move Towards $41.94".
Technical Analysis
Currently, $PFE is still respecting the Ascending Triangle chart pattern, where after touching the slope of higher lows at around $35.50 to $36.00, it has flown past our optimal entry level of $36.36 to $36.46 and hit a 1-month high of $38.84 on 20th October 2020. It has since retraced from the highs and closed at $37.49 with a pre-market trading value of $37.66 on 21st October 2020 as of the time that I am writing this post.
New Finding 1: I have included a new Slope of Lower Highs based on the Weekly Timeframe as seen in the chart. For those who are baffled as to why there was such a huge rejection after hitting $38.84, this is your answer. If we go back to the 4H chart, we can see that after momentarily breaking the Slope of Lower Highs, there was a huge rejection within the same candle and subsequently closing just below the Slope of Lower Highs. Thus, the rejection was purely a result of a technical move, and not a fundamental problem with the company. In fact, I view this rejection as a very positive bullish indicator because firstly, price is respecting our Ascending Triangle and Symmetrical Triangle very well, which further strengthens our Bullish Bias towards $PFE; and secondly, if $PFE were to continue bulling without the retracement we saw yesterday, it would have brought $PFE's price too high, too fast, creating a 4 Hour Regular Bearish Divergence and false Symmetrical Triangle Breakout. These would have weakened our Bullish Bias towards $PFE, at least from a technical perspective.
New Finding 2: Fundamentally, $PFE is still in a very strong position in terms of where it is right now with its COVID-19 vaccine development as well as its first-mover vaccine advantage compared to other companies. We see Pfizer entering into COVID-19 vaccine deals with countries such as New Zealand and Mexico, where they each agreed to acquire 1.5 million and 15.5 million to 34.4 million doses respectively. This is great for Pfizer once their vaccine is approved and produced successfully. We also see 2 high-profile late-stage clinical trial - Eli Lilly's and Johnson & Johnson's test of COVID-19 vaccine coming to a pause due to possible safety concerns, which further strengthens Pfizer's position as a first-mover.
New Finding 3: However, I would say that the biggest news that came under my radar would be Pfizer's CEO pushing back COVID-19 vaccine submission to November due to stricter FDA guidelines requiring companies to provide two months' worth of safety data on half of the trial participants following the final dose of any investigational COVID-19 vaccine. I would say that this is one of the best things that the FDA could have ever done for Pfizer because back when Pfizer previously said that it would seek approval by October, there were a lot of distrust, uncertainties, and safety concerns towards a vaccine that was approved and produced so quickly. This could have potentially caused a weaker-than-expected bullish move even if Pfizer managed to get its vaccine approved and produced. However, with a stricter FDA guideline, if Pfizer is still able to get its vaccine approved and produced first in the market, consumers will be more likely and willing to accept usage of their vaccines, leading to a positive bullish catalyst for $PFE.
Entries, Price Targets, Stop Losses
There are no changes to our price targets and stop losses, so I will not repeat in this post. If you are interested to see what they are in detail, you can refer to my previous post, I have linked it down below in the 'Related Ideas' section.
What I want to focus on is the entry. I believe that this pullback has presented itself as a solid price to add a position or even enter a new position if you have missed our previous entry. So, if you would like to enter into $PFE, this is your chance before it breaks the Symmetrical Triangle towards the upside, and subsequently, break the Ascending Triangle. In general, buying in the lower half area of the remaining Symmetrical Triangle would be a great entry.
Disclaimer
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