The key with this pattern is the neckline -- the line that connects the highs from the two shoulders.
When a stock breaks out above that line, it tells someone like Collins that it's time for a big move higher.
Pfizer's neckline is at $25.80, and it crossed over that level just last week.
But that's not all.
Last week, Pfizer broke out above a key level – a ceiling of resistance at $25.50. If the stock closes above that level again this week, Collins believes the stock could resume its long march higher.
In addition to bullish upside patterns – other patterns suggest downside may be limited.
Collins believes Pfizer has a healthy floor of support at $24.60 and even if that breaks, two more key support levels lie in the $23 range.
What's the bottom line?
"It's rare that you get a safe boring, high-yielding drug stock like Pfizer that also has a really hot chart, at least as interpreted by Tim Collins," said Cramer. "For me, that's still one more reason why Pfizer's a buy buy buy."
0 comments:
Post a Comment