PFIZER | 2x returns | Breakout of 3 year resistance

29 ago

| PFIZER |

Monthly time frame
Stock has been moving along the upward blue dotted parallel channel since listing in 1994
Stock has bounced from a recent “higher low” made in Mar 2023
Stock riding above 20-, 50- & 200-month moving averages
RSI > 70, indicating solid bullish momentum
MACD crossover extended and is above the 0 line, indicating bullish momentum

Weekly time frame
Stock has been following the rounded bottom formation for last 3 years
Stock is trading near the white resistance trend line
Double Breakout on the cards, from the rounded bottom formation + trend line
Stock riding above 20-, 50- & 200-week moving averages
Golden crossover just now completed
RSI = 80, indicating aggressive bullish momentum
MACD extending the crossover & above the 0 line, indicating bullish momentum

Daily time frame
Stock riding along the dotted white parallel channel since Jul 2024
Breakout possible if the stock crosses the white resistance trend line of 6100
Stock riding above 20-, 50- & 200-day moving averages
RSI > 65, indicating bullish momentum
MACD is well above the 0 line, indicating solid momentum

Conclusion
Entry: 6,200
Stop Loss: 5,000
Target 1: 7,867
Target 2: 10,614
Target 3: 13,361

Fundamentals
ROCE = 22% {Ideal > 15}
ROE = 16.1% {Ideal > 15}
Stock PE (45) < Industry PE (48) {Stock not overvalued}
Int Coverage = 57 {Ideal > 2}
Debt to equity = 0.01 {Ideal value < 1}
Promoter stake has remained consistent over the years > 63%
FII and DII participation increased in previous 2 quarters