THE DESTRUCTION OF A PLANT IN NORTH CAROLINA AS A RESULT OF A TORNADO NEGATIVELY AFFECTED THE ISSUER'S SHARES
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL STOP |
| Entry Point | 33.50 |
| Take Profit | 31.00 |
| Stop Loss | 35.00 |
| Key Levels | 31.00, 33.50, 36.00, 38.40 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 36.00 |
| Take Profit | 38.40 |
| Stop Loss | 35.00 |
| Key Levels | 31.00, 33.50, 36.00, 38.40 |
Current trend
Shares of Pfizer Inc., the largest American pharmaceutical company, are correcting at 35.03.
One of the main reasons for the unstable dynamics of quotations in recent years is the uncertainty with the timing of the launch of the company's largest plant in North Carolina, which was destroyed by a tornado at the end of July. Specialists will have to assess the prospects for the restoration of production and possible failures with the supply of products, since, according to statements by representatives of Pfizer Inc., a warehouse with drugs was destroyed as a result of a natural disaster. Management has already appealed to customers with a request to temporarily reorient to alternative medicines, the release of which is not yet possible.
Earlier, the company published a financial report for Q2, which was weaker than the previous one, but still exceeded analysts' forecasts. Thus, revenue amounted to 12.7B dollars compared to the forecast 12.08B dollars, and earnings per share — to 0.67 dollars, which is also higher than preliminary estimates of 0.57 dollars. Of course, the indicators have significantly decreased compared to the statistics of last year, when the demand for the COVID-19 vaccine was kept at peak values.
Support and resistance
On the daily chart, quotes are trading in the middle of the local corridor with the boundaries of 37.30–32.50.
Technical indicators hold a quite stable sell signal: the fast EMAs of the alligator indicator are below the signal line, expanding the oscillation range, and the histogram of the AO oscillator is trading below the transition level, forming descending bars.
Support levels: 33.50, 31.00.
Resistance levels: 36.00, 38.40.
Trading tips
Short positions can be opened after a reversal and a decline in the asset, as well as consolidation of the price below the support level of 33.50 with a target at 31.00 and stop-loss at 35.00. Implementation time: 7 days and more.
Long positions may be opened after the price consolidates above the resistance level at 36.00 with a target at 38.40. Stop-loss – 35.00.
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