Don't Ignore This Chart!

Pfizer Surges within Consolidation


The healthcare sector is coming alive on Monday and leading the broader market. As with the S&P 500, this sector struggled in 2018 and the Health Care SPDR (XLV) is up around 1.5% year-to-date. SPY, for reference, is up almost 3% this year. 

The chart below shows Pfizer (PFE) with a steady uptrend until January and an erratic range since late January. The range started with a sharp decline into early February and traced out a triangle of sorts the last three months. 

Despite an erratic 2018, I still think the long-term trend is up and this is a consolidation within that uptrend. The stock hit a new high in January, and the 50-day EMA is above the 200-day EMA. 

Pfizer established clear support and resistance levels to watch for the next directional signal. A break above the February-April highs would be bullish and signal a continuation of the bigger uptrend, while a break below the March-May low would be bearish and could lead to a bigger trend reversal. 

Plan Your Trade and Trade Your Plan.

- Arthur Hill, CMT

Senior Technical Analyst,

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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