Each week, I’ll give an overview of a stock and Licia Leslie will follow that up with a chart analysis the next day. Bill Griffo will chime in with macro analysis and Andrew Giovinazzi will then finish out the week with a volatility breakdown.
Have a stock YOU want us to review? Email my team here. – Mark
Hey Traders,
Licia Leslie in the Pit Report today.
Believe it or not, I was a market maker in Pfizer Inc (Ticker: PFE) options at the Chicago Board Options Exchange!
It was pretty boring stock back then.
I just remember relentless out of the money call sellers.
So we kept the volatility low – until earnings week, of course.
Looking at the chart, PFE has been in a pretty significant downtrend until the last month.
On December 14 it traded just shy of $55 and bottomed out at $39.23 on March 10th.
The recent rally is being stalled by the resistance at the 50 day moving average at $41.49.
PFE has struggled the last five days to close above it.
The lows of these last five trading days line up with the highs of the first week of March and provide a near term support level and below that the previous low of $39.23 is support.
If PFE cannot close above the 50 day, expect it to be revisiting these levels.
On the upside, if PFE manages to close above the 50 day moving average, the first level of resistance comes in at $43 and then $44.50.
It could just revert back to its old boring self.
Trade accordingly.
Licia Leslie