Shares of PFIZER (PFE) continue to struggle after testing heavy resistance just below $34.
In November, the stock left behind an ugly post-election spike high just shy of this level. This month the same key zone, has proven to be a major roadblock.
After leaving behind back-to-back weekly highs near this month's top, PFIZER faces rising overhead pressure. With Tuesday's nearly 2% drop, PFIZER stock is now off by more than 5% from the January peak and is now well below last week's low.
This steep pullback may soon need a rest, but further downside is likely. For patient investors, continued downside will create a very low-risk entry opportunity.
On Nov. 9, PFIZER exploded to the upside after opening the session with a huge gap. The stock extended this breakout the next day with another high-volume gain but quickly faded on day three. By late November, the stock had retraced nearly all of the post-election surge.
As the current pullback extends, patient PFIZER bulls should consider a dip back down to the $30.50 to $30 area as an entry opportunity. On the downside, a clear break through the $29 area would indicate a much more prolonged basing pattern will be needed before Pfizer returns to rally mode.
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