Chart Advisor: Comparing Pfizer and the S&P 500

Articles From: Investopedia
Website: Investopedia

From SIA Charts

1/ Daily Stock Report: Pfizer Inc (PFE)

2/ Candlestick Chart

3/ Point and Figure Chart

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1/ Daily Stock Report: Pfizer Inc

The last time we looked at Pfizer Inc (PFE) was a year ago on Jan 19, 2023, when the stock just entered the Red Unfavored Zone of the SIA S&P 100 Index report at a price of $46.08. The shares currently trade at $28.99. Since then, PFE had declined -36.36% in the past 1-year time frame and an annualized return of negative 25.41% for the trailing 2-year time frame. The corresponding S&P 500 index has increased 22.05% over the past 1 year and 1.20% over the past 2 years. Pfizer Inc (PFE), a Drug stock, currently sits dead last out of 103 spots in the SIA S&P 100 Index report, dropping 4 spots in the last quarter.

2/ Candlestick Chart

In looking at the 2 Year Candlestick Chart of Pfizer (PFE) the shares initially trended sideways from January 2022 to Jan 2023, then once the shares entered the unfavored Zone on Jan 17th, 2023, we see the bottom fall out of the shares and a steady downtrend of consistently lower lows and lower highs which is still intact up until today indicating an extended period of a long-term distribution phase. Which makes matters worse, in longer term downtrends, stocks tend to first form some sort of a basing pattern for a period of time before an uptrend can materialize which we don’t see occurring yet on PFE. SIA Charts also helps you identify other names for better opportunities in the Peer group. Elli Lilly, another Drug stock, entered the Green Favored on April 4th (it still resides in the Favored Zone) and is up 80.40% in the past 1 year, and has an annualized return of 57.49% in the past 2 years.

3/ Point and Figure Chart

In looking at the Point and Figure Chart at a 2% Scale, we see that the stock peaked back in December of 2021 at a price of approximately $56.08 and since then, after a brief sideways trading range in 2022, a steady decline of lower highs and lower lows formed beginning in 2023. After finding a brief support area at $35.00 in May to June of 2023, the shares broke down again, trading below its long-term downtrend line at the $32.00 area before finding a bottom at the $26.00 level. Currently we see the shares in a rising column of X’s, which has formed in the past month but a reversal in trend still has not materialized as yet and no sign of a confirmed bottom can be seen. 

Near-term resistance is fast approaching the 50% retracement level of $30.96 and, above that, $36.28 and $40.05. Support can be found at its 3-box reversal of $26.95 and, below that, its recent low at $25.91.

With a bearish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 5 out of 10, PFE is exhibiting short-term weakness against the asset classes.

Originally posted 12th January 2024

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