Pharmaceutical giant Pfizer (NYSE:), co-developer with BioNTech (NASDAQ:) of one of the most widely used COVID-19 vaccines in the developed world, will release its Q4 2021 results on Tuesday, February 8. , before the opening bell.
Consensus estimates predict earnings per share of $0.8742 on revenue of $24.16 billion. Those are the results from a year ago for both stats.
Analysts at Goldman Sachs remain neutral on the New York City-based pharma giant ahead of the company's 2022 guidelines. They have set a 12-month price target of $57 for the stock, which closed Friday at $53. Goldman's forecast represents an increase of 7.5%.
While revenue expectations for other, newer drugs such as Paxlovid, Pfizer's still-new anti-COVID pill, which was approved for emergency use in the US in late December, are unclear, there is consensus that the company well-positioned to take advantage of the ongoing need for its COVID-related vaccine.
Although the PFE fundamentals look optimistic, technical signals regarding supply and demand are less clear.
Demand stalled on January 21, after which the price fell below the most recent upward trendline since the October 2021 low. A four-day rally followed, but bulls still could not muster enough strength to counter bearish activity to push the stock back above the trendline.
This disturbance appears to form the right shoulder of an H&S crest.
The placement of the reversal pattern is significant. It develops on top of a rising channel.
The head of the structure is above the rising channel, suggesting that traders were collectively willing to raise prices more quickly. However, the return to the channel increases the likelihood of the price retesting the channel bottom.
This battle between bull and bear is the cause of this price pattern. A downward breach of the neckline is likely to push the price towards the bottom of the channel, showing the recent upward trend since the March low.
Conversely, if price blows out the H&S reversal pattern, it would undoubtedly push prices upward. , as described above.
Average traders would go short if the price retests the January 28, $54.67 high.
Aggressive traders can now short according to a coherent trading plan. Here's an example:
Trade sample
Admission: $53
Stop Loss $55
Risk: $2
Target: $47
Reward: $6
Risk Reward Ratio: 1:3
