Pfizer forms shooting star candlestick pattern

The stock of Pfizer Limited has formed a shooting star candlestick pattern on the weekly time frame. The shooting star candlestick formation is viewed as a bearish reversal candlestick pattern, which typically occurs at the top of an uptrend. The long upper shadow of the shooting star implies that the market is being tested to find out where the resistance and supply were located.

Along with this bearish formation, the stock has also managed to close below its weekly pivot and short-term moving averages, i.e. 13-day EMA and 20-day EMA. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the 70 zone and, at present, its reading is 49.81. The RSI is trading below its nine-day average and it is in the falling mode, which indicates a further downside momentum. The daily stochastic oscillator has given a bearish crossover in overbought zone, which indicates limited upside for now. Moreover, a negative divergence is also spotted at the daily and weekly time frame on the 14-period RSI. A negative divergence occurs when the price is making a higher high, while the RSI forms lower high.

Going ahead, in case a stock sustains below the level of Rs 4,060, it would invite further selling and may test the low of Rs 3,945, registered on January 9, 2020. On the other hand, it is advisable to wait till the stock moves above the mark of Rs 4,630 to create any long positions in the stock.

On Friday, the stock of Pfizer Limited closed at Rs 4,173 per share, down by 9.08 per cent. The stock opened at Rs 4,622 per share and hit an intraday high of Rs 4,629.85 and a low of Rs 4,150 per share on NSE.