Pfizer Inc. (PFE) shares have seen the Money Flow Indicator climb above 60, potentially spelling a near-term reversal if it crosses above the 70 line. The Money Flow Indicator is a unique indicator that combines momentum and volume with an RSI formula. Because of its incorporation of volume, the MFI is better suited to identify potential reversals using both overbought/oversold levels and bullish/bearish divergences. As with all indicators, the MFI should not be used by itself. A pure momentum oscillator, such as RSI, or pattern analysis can be combined with the MFI to increase signal accuracy.
The MFI was created by Gene Quong and Avrum Soudack and they believed a reading above 70-80 would signify Overbought territory where a reading below 20-10 would indicate that the conditions were indicative of an Oversold price level.
As we move deeper into earnings season, investors and analysts will be closely watching which companies look they are getting things right. Many investors will be following which companies beat or miss the estimates by a wide margin. Large surprise factors can cause a stock to jump or fall shortly after the actual numbers are released. Investors may also be tracking which industry leaders come out on top during the latest round of earnings reports. Tracking the sectors that are poised for growth may help give the investor a good idea for the types of stocks they may want to add to the portfolio as we get closer to the end of the current calendar year.
Investors may be trying to get an edge by following some additional technical levels for Pfizer Inc. (PFE). In terms of Moving Averages, the 50-day is 43.97, the 200-day is at 39.29, and the 7-day is 45.03. Using a longer term moving average such as the 200-day may help block out the noise and chaos that is sometimes created by daily price fluctuations. In some cases, MA’s may be used as strong reference points for finding support and resistance levels. Employing the use of the moving average for technical equity analysis is still highly popular among traders and investors. The moving average can be used as a reference point to assist with the discovery of buying and selling opportunities.
Pfizer Inc. (PFE)’s Williams Percent Range or 14 day Williams %R currently sits at -32.28. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would point to an overbought situation. A reading from -80 to -100 would signal an oversold situation. The Williams %R was developed by Larry Williams. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator.
Pfizer Inc. (PFE) currently has a 14-day Commodity Channel Index (CCI) of 98.01. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.
Currently, the 14-day ADX for Pfizer Inc. (PFE) is sitting at 19.58. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.
The RSI, or Relative Strength Index, is a widely used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The RSI may be useful for spotting abnormal price activity and volatility. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. A reading under 30 may indicate that the stock is oversold, and possibly undervalued. After a recent check, the 14-day RSI is currently at 56.81, the 7-day stands at 57.48, and the 3-day is sitting at 43.24.
Many investors enter the stock market without a plan in place. Investment goals may be a highly important part of coming out on top. Investors may need to set realistic and measureable goals in order to build a baseline for success. Defining investment goals clearly can help keep individual investors from making common mistakes and losing their shirts. Creating a plan for entering the equity market may start by setting up goals and outlining the objectives of the individual. These goals can differ depending on the person and situation. Many investors will opt to follow strategies put in place by others. This may work fine for some, but not as well for others. Keeping a close eye on particular stocks in the portfolio may help the investor when the time comes to adjust the holdings. Being able to adapt to rapidly changing market environments may turn out to be immensely important when the winds of uncertainty blow in.
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