Judy,
Today's action in PFE was more bullish than might appear on the surface. As you know, when support holds, it serves to strengthen the support line and further validates the uptrend line. I don't find it to be a coincidence that the BSL was able to remain intact at $94. One more box down to $93 would've been a p&f sell and a break of the BSL to boot. But it didn't happen. No way to tell beforehand that the line was going to hold, however, September '98 has seen the most serious tests of this trendline since it formed in April '97. In August '97, the stock came within $6 of the BSL, and in September '97, PFE came within $4, but that's about it.
PFE has last given a buy signal on it's chart in July. After that p&f buy, the stock had a HPT at $112, also in July, and it's been downhill ever since. The stock is now 1 box from a double top buy signal at $102 and a move to $104 would signal a triple top buy signal. That nasty downtrend line from the July top is at $106 and should the stock be able to take out that BRL with the buy signals as I described, well, you're talking about a brand spanking new uptrend for the stock.
On the downside, long term holders must still keep their stops at $93. At that price, the stock would give a triple bottom sell, which is a stronger sell signal, and, break the BSL in the process.
By the way, should PFE give the buy signal as I outlined above in this current column of X's, the new upside price target will be $128.
Have a great weekend.
Bruce |
