Thursday, February 18, 2010

Stocking PFE

PFE is currently trading about 3 points off its January high of $20.36, at $17.66. PFE has traded in a channel highlighted in the chart below since the Mar '09 lows of 11.62. The upward sloping channel was breached on 2-4-10. So technically speaking the stock is weak and is quickly approaching its 200 day moving average. I think that this could act as support. The 200 day currently stands around $16.75, where I am interested in initiating a long position. I am not sure how I want to play it, but it will more than likely be through strait calls.

Currently I am not initiating a position yet. But I do have an alert set at $17.25 to bring my attention back to the stock. I think a test of the 200 day is likely, but I also think that this level will act as support. I will update with a possible position later if my entry price is hit.

No comments:

Post a Comment