The Director General of the World Health Organization, Tedros Adhanom Ghebreyesus, warned Monday that the pandemic is "far from over" due to confusion and complacency. According to the WHO assessment, the COVID-19 trajectory is now "growing exponentially, with more than 4.4 million new virus cases last week. That, of course, only increases the global demand for the vaccine.
Among the companies whose Innocence is already available and in use, including Moderna (NASDAQ :), AstraZeneca (NASDAQ 🙂 and Johnson & Johnson (NYSE :), Pfizer's vaccine appears to be the clear leader in the race. to enlarge the market. share.
This is because recent clinical studies have shown that the Pfizer (NYSE 🙂 image is safe and effective for both the 12-15 year old cohort and those 16 and older who are currently receiving it. Which positions the Pfizer's vaccine to get FDA emergency clearance for younger adolescents months ahead of competition – before schools open in the fall?
The technical perspective for Pfizer shares also shows its leadership after PFE completed back-to-back bullish patterns.
Pfizer extended an upward break of the second consecutive falling flag, bullish after sudden and sharp previous rises. The flagpole, which was formed by the rapid, almost upright movement, did not catch traders in the know. In turn, they became suspicious of too good a trade.
So they committed profits and then waited for further developments. Still, despite the winding down of their positions, there was enough demand to pick up the slack. That supported the price and prevented an actual decline.
As demand absorbed all available supply within the range, buyers increased their bids to find new, willing sellers at higher prices. It is a signal that these buyers are taking their position seriously and are willing to raise extra money to prove it. In addition, they showed that they were hungry for more.
This stimulated a renewed appetite for early bulls who had already sold their positions, while also questioning their initial instinct to make money. They are now hedging, pushing the price even higher, and in the process finally attracting remaining, undecided investors as well. As such, the scale of supply and demand is expected to tilt in favor of demand, which will catapult the price even higher.
Note the symmetry of the repeated patterns. The flagpoles are nearly identical, with the first going up $ 1.43 and the second going up $ 1.48. Therefore, the current outbreak is expected to extend the same distance – minimal. With a jump of $ 0.55 from the top of the flag, there is almost two-thirds to go.
This will increase if the price performs a return movement, retesting the demand for the pattern. We can also see how symmetrical the pattern is, as it forms an ascending channel.
After the price found resistance right at the 200 DMA on Friday – after the intraday puncture, but finally closing right below it – it shot through the resistance to start the new week.
The MACD's short MA climbed back above the long MA, and the RSI will blow out a potential top, driving prices even higher.
Fundamentals as well as technical factors provide the outlook for the stock's rise. However, we expect the previous high of $ 37.80 on January 11 to provide at least temporary resistance. If the price makes it, we expect it to stay higher and retest the December peak of USD 43. overcome the $ 38 level and find a new floor before relying on the current uptrend.
Moderate traders would be satisfied with a 2% breakout to $ 37.2 and a two day period where the price remains above the pattern.
Aggressive traders could act at will, provided they understand and accept the risk of premature entry, in order to gain a greater share of the move. The higher risk makes a trading plan all the more important.
Here's an example:
Trade Sample
Entry: $ 37
Stop Loss: $ 36
Risk: $ 1
Target: $ 43
Reward: $ 6
Risk: Reward Ratio: 1: 6
