Is Pfizer Expecting Resistance Soon?

Published on Friday, 08 June 2012 07:40 Written by TradersHuddle Wire

New York, June 8th (TradersHuddle.com) - Pfizer, Inc. (NYSE:PFE) ended the trading session at $21.94, near its 50 day moving average set at $22.35. Pfizer's price action placed the stock below this important level, which makes it difficult to be bought, as the stock will certainly face resistance as it approaches its 50 day moving average.

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.

The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $21.95 and resistance at $23.30. These levels will be closely monitored, as they provide great insight into the latest price dynamics.

If traders want to establish a position in Pfizer, given the resistance expected as the stock approaches its 50 day moving average, a trade might materialize as the stock manages to break this important technical level. After the breakout, the 50 day moving average could be used as support going forward. However, until the break materializes, buying the stock is basically a gamble with 50-50 chance.