Trading Idea: Is Pfizer Breaking Out?

Published on Friday, 08 March 2013 08:36 Written by TradersHuddle Wire

New York, March 8th (TradersHuddle.com) - Shares of Pfizer, Inc. (NYSE:PFE) closed the session at $28.27 just above calculated resistance at $27.84. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

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 stock was trading in a well defined range with support at $23.55 and resistance at $27.84. Given that this range was broken, traders will be closely monitoring Pfizer's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Pfizer is still near the broken resistance level, traders will be focusing on the $27.84 level to see if the stock holds the breakout without rolling over.