Pfizer is a trickster, and recent market action seems to signal a sharp downtrend in Pfizer stock over the next month. That said, however, I am holding my shares for the long-term with the prediction that the October slump currently being observed will give way to another bull run like that seen in August and September.
The October downtrend sends mixed signals: at the same time stochastics reveal Pfizer to be nearing oversold, PFE stock is nearing the bleakest points of its MACD depths. Indeed, the last time Pfizer hit this point was in April, which led to a $3 drop in share price. That said, the long decline from April led to Pfizer's mini-rally, and similar circumstances could be in order for the future.
As of October 10, Pfizer is in 'wait-and-see' mode: A continued decline past the 50-day EMA could provide an excellent opportunity for cheap accumulation before another bull run, or it could be signaling a broader decline of Pfizer's shares over the next few months. However, for the longest of long-term shareholders, the call is the same: Hold, and hold tight.
$27.56 (10/10/06)
