Leading pharmaceutical giant, Pfizer Inc (PFE), is declining lower after reporting earnings. Many traders and investors thought the stock would rally higher because of the recent launch of their coronavirus vaccine. The fact is that the markets are very efficient and that news was already baked into the cake. Today, Pfizer (PFE) stock is trading lower by 2.60% to $34.85 a share. The stock is now trading below its 50 and 200-day moving averages. This puts the stock in a weak technical position on the charts and usually signals lower stock prices are ahead.
The next major support level that I see for Pfizer (PFE) stock wll be around the $32.00 area. This important support area is where the stock broke out late June 2020. Often, stocks will be defended when they backtest their prior breakout levels. There is also a key retrace level for the stock around the $32.00 level. That retrace area should also be a supporting factor for a bounce in the stock when tested.
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