Pfizer Limited (PFIZER) Stock - Complete Technical Analysis - Sep 26, 2024

Pfizer Limited Technical Analysis: Is it Time to Buy or Sell

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. Today, let's dive into a detailed technical analysis of Pfizer Limited's stock, currently priced at 5,420. The stock's P/E ratio stands at 41.1, while its book value is at 786, and it offers a modest dividend yield of 0.65%. With a ROCE of 22.0% and ROE of 16.1%, Pfizer demonstrates solid fundamentals.

From a technical standpoint, we observe that the stock is trading significantly below its 52-week high of 6,451.15, which it reached on September 2, 2024, indicating a 16.04% decline. However, it's worth noting that it's also 41.61% above its 52-week low of 3,824.75 recorded on September 28, 2023.

Analyzing the average directional index reveals strong momentum with levels above 40, suggesting a robust trend. However, the RSI is quite low at 31.1, indicating that the stock may be oversold, while the Stochastic %K is at an extreme low of 5.11, which often signals a potential reversal. The MACD is negative, reinforcing the bearish sentiment in the short term. The presence of a Spinning Top candle indicates indecision in the market, reflecting potential volatility ahead.

Looking at the moving averages, the short-term averages are below the long-term averages, indicating a bearish trend. Notably, the current price is trading below the 10-day, 20-day, and 30-day EMAs, which signals continued selling pressure.

The support level is observed around 5,307, with resistance at 5,958, creating a range that traders should monitor closely. The average true range suggests volatility, emphasizing the importance of proper risk management.

In summary, while Pfizer Limited's stock is currently in a bearish phase, potential reversal signals are emerging. Traders should watch key support and resistance levels and consider the implications of the current oversold conditions.