Trading Pfizer

Published on Thursday, 09 February 2012 08:00 Written by TradersHuddle Wire

New York, February 9th (TradersHuddle.com) - Shares of Pfizer, Inc. (NYSE:PFE) closed the trading session at $21.01 near its 50 day moving average currently set at $21.20. Pfizer's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

Pfizer Inc. (NYSE:PFE), the global pharmaceutical company that develops, manufactures, and markets medicines for humans and animals. The Company's products include prescription and non-prescription pharmaceuticals, and animal health products such as anti-infective medicines and vaccines. Some of Pfizer blockbuster drugs are Celebrex for arthritis pain, and inflammation and acute pain, Viagra for erectile dysfunction, and Lipitor for elevated cholesterol levels in the blood. The company was founded in 1849 and is headquartered in New York, NY.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $20.80 and calculated resistance at $21.90. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Pfizer shares.

Traders should evaluate their trade if they want to establish a position on Pfizer given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.