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- 1 PFE stock is showing weak chart structure hovering near its 20 day EMA.
- 2 Bulls are trying to show their strength but facing selloff.
Pfizer stock ( NYSE : PFE ) price is struggling near the 20-day exponential moving average (EMA) and facing continuous selling pressure from the supply range of $50. PFE stock struggled to hold the range and attempted to gain momentum in the last trading sessions. Furthermore, the stock is defending the lower trendline and is showing gradual accumulation from the demand zone near $35.
Since the beginning of 2023, the performance of PFE stock has been consistently declining, indicating a significant increase in selling activity that has pushed its value downwards. This downward trend has further intensified as the stock price approached and eventually fell below the 20-day EMA. Afterwards, the stock miraculously endured the pressure and rebounded, providing a temporary respite for its prospects.
Additionally, the stock is facing a barrier of the 20- day & 50-day EMA and unable to go beyond this, which made price struggle in the congestion zone. Last week, PFE stock made an attempt to surpass the resistance level of $40; however, it encountered insufficient momentum and experienced a rejection. As a result, the stock remained confined within a narrow trading range, consistently hovering near the support level.
Pfizer Inc. (Pfizer) is a research-based global biopharmaceutical company. The Company is engaged in the discovery, development, manufacture, marketing, sales and distribution of biopharmaceutical products. Its global portfolio includes medicines and vaccines
At press time, PFE stock was traded at $38.91 with an intraday drop of 1.09%, indicating bearish sentiments. Furthermore, the intraday trading volume was noted at 17.983 million, which marks a decline of 2% indicates low interest of investors.
Daily Charts Shows Seller Dominance
On the daily charts, the stock of PFE exhibited a consistent pattern of lower lows from the previous trading session. It reached a critical support level at approximately $35, where the stock demonstrated resilience by consolidating its position and maintaining stability. Moreover, the price action indicates that if the stock continues to be sold, then it will break the primary support level and will head towards $30 and then $25.
On the other hand, if the stock manages to stabilize above the 20-day EMA, then the immediate resistance level of $40 will act as a barrier. If this is surpassed, then the stock will convincingly move towards the 200-day EMA, which is near $45.
What PFE stock suggests on short term charts?
On the 4-hour charts, PFE stock showed negative cues and the leading indicators pointed to bearish momentum due to the short buildup activity noted by sellers. Moreover, the buyers were still cautious because the price is still hovering in the congestion range, which needs to rise above $40 in order to gain a fresh rebound.
The RSI curve is dragging towards the oversold region and a negative crossover was noted, which indicates the sellers’ attachment to the stock.
The MACD indicator also tells us the same, giving a bearish crossover and bleeding the gains from the top.
Conclusion
Pfizer stock is currently in a congestion zone and it is expected to move further down if it stays below $40 in the next sessions.
Technical Levels:
Support Levels:$35 and $30
Resistance Levels: $40 and $45
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
