Pfizer: is vaccine surge second Viagra moment?
After yesterday's vaccine surge our chartist sees where the share price could be heading.
10th November 2020 09:39
by Alistair Strang from Trends and Targets
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After yesterday's vaccine surge our chartist sees where the share price could be heading.
Pfizer Inc (NYSE:PFE)
When we ran our analysis on Pfizer (NYSE:PFE) three weeks ago we were optimistic, but didn't appreciate we were reviewing a company capable of provoking a Viagra moment (one of their other products!) on the world’s stock markets when it announced a viable Covid-19 vaccine.
Oddly, the company’s own share price exhibited less recovery enthusiasm than airlines, banks, and oil firms.
In addition, a few facets of price movements amongst listing on the Nasdaq concern us a little.
We were told, at the onset of the pandemic, that life has changed, possibly forever. In the months since, changes in shopping habits, work practice and travel tended to shape which sectors of the market would flourish, along with those who faced a hammering.
In the hours since the Pfizer announcement (curiously delayed until after the US election) we noticed companies like UPS (NYSE:UPS), FedEx (NYSE:FDX), Zoom (NASDAQ:ZM), online payment company PayPal (NASDAQ:PYPL), JD.com (NASDAQ:JD) and even eBay (NASDAQ:EBAY) were suffering share price reversals.
It begs the question: will people revert to ‘proper’ shopping if the world returns to normal?
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Our suspicion is the switch to new shopping habits is here to stay, the convenience of online buying doubtless welcomed by many who were forced into it.
Aside, of course, from the issue of getting rid of cardboard boxes! Cardboard is brilliant when building a bonfire to dispose of autumn leaves.
We wonder if the lack of flamboyance with Pfizer shall be reflected in some wider market turbulence in the weeks ahead, as doubt establishes whether various national drug approval bodies will deem Pfizer’s product safe for distribution.
If this is the case, will the company share price be equally turbulent?
For the immediate future, we're fairly happy where Pfizer closed the session on 9 November.
By just $0.1 (£0.076) it achieved a higher high in the period since March's Covid-19 drop.
As a result, ongoing traffic above $40 looks capable of reaching an initial $45 with secondary, if bettered, at a longer-term (or later that day) $53.
Visually, closure above the $45 mark looks critical for the longer-term, capable of landing the share price in a zone with a distant sounding potential at $65.
If it all intends to go wrong, below the $30 mark shall provide sufficient excuse for panic.
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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