Daily Technical Analysis & Trade Setup📊 Pfizer Ltd – Technical Chart Analysis
Date Analyzed: 27-May-2025
Time Frame: Daily
Price Action Overview:
Pfizer Ltd has recently witnessed a sharp bullish move, backed by a strong breakout candle on the daily chart. This up-move is accompanied by a significant volume spike, suggesting increased market participation and conviction in the direction of the breakout. The price has convincingly broken past a key resistance zone, turning it into a potential support zone going forward.
Chart Pattern / Candlestick Analysis:
Breakout Candle: A large green candle with strong body formation.
Volume Breakout: The stock saw a 20-Day Volume Breakout, confirming the strength of the move.
Momentum Continuation Phase: The price structure indicates a transition from accumulation to markup phase, possibly following a Volatility Contraction Pattern (VCP) that resolved on the upside.
Technical Indicators:
Stochastic (D/W/M): Strong bullish readings across daily and weekly timeframes.
CCI (D/W): Shows strength on daily and weekly charts.
MACD (D/W): Bullish crossover on daily and weekly charts.
RSI (D/W): Daily RSI is above 90, showing momentum strength.
Support & Resistance Levels:
Support Zones:
Support 1: 5240.87
Support 2: 5064.13
Support 3: 4965.57
Strong Support: 3800–4000 zone (historical demand zone)
Resistance Zones:
Resistance 1: 5516.17
Resistance 2: 5614.73
Resistance 3: 5791.47
Weak Resistance: 6177.85 and 6547.75 (based on higher timeframe pivots)
Educational Analysis:
This chart is a textbook case of a Breakout with Confirmation. Pfizer Ltd traded within a descending channel from August 2024 to April 2025, consistently forming lower highs and lower lows within two parallel downward-sloping trendlines. This phase indicated sustained bearish sentiment and acted as a long-term consolidation zone. However, in late May 2025, the stock broke out decisively above the upper resistance line of the channel, supported by a surge in volume—an essential sign of institutional participation. Such breakouts gain further credibility when accompanied by bullish signals from momentum indicators like RSI and MACD, which often turn upwards before or during the breakout. For traders tracking breakout setups, this alignment of price structure, volume, and momentum provides a strong confirmation of trend reversal potential and buying interest.
How to Trade Pfizer Ltd (For Educational Purpose Only):
How to Trade Pfizer Ltd (for learning purpose):
Entry Example: 5438.00
Stop Loss: 5068.10 (Risk: 369.90)
Target Example: 5807.90 / 6177.85 (Reward: 369.90 / 739.85)
Sample Quantity: 50 shares
RR Ratio: ~1:1 / ~1:2
Aggressive Traders: May consider riding the trend with trailing stop
Conservative Traders: Can wait for a pullback into the fresh strong demand zone (4488-4405)
⚠️ Risk Management Tip: Always trade with a clearly defined stop loss. Avoid entering positions impulsively. It is advisable to start with a smaller quantity and increase your exposure only if the price action confirms the continuation of the trend. Capital protection should always be the priority.
📢 Disclaimer
This content is created purely for educational and informational purposes. It is not intended as investment advice, stock recommendations, or trading tips. Trading and investing in the stock market involves risk. Please consult with a SEBI-registered financial advisor before making any investment decisions. The author/creator is not registered with SEBI and shall not be held responsible for any losses incurred based on this information. Always do your own research and use proper risk management.
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