The United States government has agreed to pay $ 2 billion for up to 600 million doses of one against COVID-19 that Pfizer (NYSE 🙂 is developing, along with German biotechnology company BioNtech (NASDAQ :), if it turns out are safe and effective
The contract for 100 million doses of the vaccine is enough to vaccinate 50 million people, based on two-dose treatment, Reuters reported. If effective, the government has an option to purchase the remaining dosages.
Shares of Pfizer, the largest US drug company, closed 5.1% yesterday, marking the third bullish hole for the stock this month, and the largest day-to-day gain in percentage terms since March 30. But this step is different. The award used the 200-DMA as a springboard to break above a downward trendline that had existed for over a year.
Daily Pfizer Stock Technicals
However, the downward trend lines have been in place since November 2018 still looming. Also, although yesterday's candle did not develop an ideal hanging man – only bearish if it leads to a follow-up candle that is lower than the previous day's closing price – this candle's location makes the stock prone to bearish retribution, after highlighting has seen in late April and early May.
The RSI jumped to 75 in overbought territory, the highest since January, just before inventory plummeted by 30% in the following nine weeks.
All of these paint a picture of an asset ready to make a profit. Cautious investors may want to wait for a withdrawal, or at least a consolidation period, to limit exposure to potential whipsaw actions.
Trading Strategies
Conservative traders are waiting for the shares to cross. above the longer downward trend line that has been running since 2018 and which would subsequently serve as support, within an ascending series of peaks and troughs that would bring about an upward trend.
Moderate traders risk a small, long position in crossing the psychological $ 40 round number level, while a new high above that of April 28 is posted at $ 39.22.
Aggressive traders can go head-to-head if they do it right, understand the risk, pay for the potential loss, and have an appropriate temperament.
Trade Example: Aggressive Short Position
Admission: $ 39
Stop-Loss: $ 40
Risk: $ 1
Target: $ 3
Risk-reward ratio: 1: 3
Variance: Halving the risk, with a stop loss of $ 39.50, doubles the risk-return ratio to 1: 6, while increasing the risk of hitting the stop-loss.
Note: This is just an example, not the lesson. For that you need to read the post carefully so that you understand the complex nature of markets and trade them. The sample is only intended to demonstrate the major factors in a coherent trading plan. Feel free to adjust the parameters to your personal wishes. If you lose a trade, don't lose heart; if you win a trade, don't get ahead of yourself. As in any other business, traders must survive to maintain their account and be profitable in the long run by getting to the statistics side.
