Up Against A Wall
While investors ran to defensive issues in droves a few weeks ago, the move
may have come to an end, at least for the near term. The Healthcare Index
(
$HCX.X |
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Chart |
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PowerRating)
was one of those that I profiled several weeks ago in “Chart Of The Day,” and it
proceeded to rally strongly.
Pfizer
(
PFE |
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Chart |
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PowerRating) is one component of this index, and it has run up against some
pretty serious resistance on a few different fronts:
1. 50% retracement from A to B.
2. The trendline beginning at A.
3. The near-term resistance, shown by the horizontal line.
4. The 200-day moving average.
Pfizer has been bumping against this area for a few days, unable to break out
from this consolidation at the confluence of resistance. I’m looking for
weakness here.