Upcoming Earnings

Pfizer, Inc. (ticker: PFE) is scheduled to report earnings before the market opens on 29 October. The consensus Earnings Per Share (EPS) estimate for the fiscal quarter ending September 2024 is US$0.64. The reported EPS for the same quarter a year prior was US$-0.17.

Symmetrical Triangle Governing Price Action

Following a clear downtrend since 2022 and subsequently bottoming at US$25.20 in April this year, price action has established a symmetrical triangle pattern between US$31.54 and US$26.87. You may also recognise that the stock is approaching the pattern’s apex, consequently a breakout in either direction could soon be upon us.

While a symmetrical triangle has materialised, it is worth observing that since printing April’s bottom, price action had formed a fresh higher high at US$31.54 at the end of July, indicating an early uptrend. From that point on, nevertheless, both buying and selling have been uninspiring.

Given the market’s ranging conditions, investors are unlikely to gather much information from the Ichimoku Cloud (consisting of the Leading Span A [light green at 29.27] and the Leading Span B [light orange at 29.14]).

Price Direction?

Technical analysts will likely be observing the symmetrical triangle closely as price nears the apex. A breakout higher supports the possibility of the uptrend gaining strength and suggests seeking a bullish scenario could be the way forward, whereas a breakout south indicates the recent pullback (and higher high) may lack gift and a continuation in the longer-term downtrend could be realised.

With that, some traders may look to play the range within the symmetrical triangle, though others may opt to wait for a breakout to form before committing.

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