PFIZER Long Term Bullish Trend and Elliott Wave Cycles
The PFIZER long term bullish trend and Elliott Wave cycles suggest the stock price will be trending higher. The cycles project it should continue toward the April 1999 highs 50.04 while it is above the February 2018 lows. From the beginning of the stock trading it had a couple decades long uptrend cycle to the April 1999 peak. This is where the analysis begins on the chart at the larger degree blue wave (I).
Firstly I will mention that is roughly a 10 year decline in the blue wave (II) to the March 2009 lows. This was certainly long enough in time and price to correct the previously mentioned decades long up trend cycle. The pullback was a basic seven swing double three correction. You can see the subdivisions of the larger degree red w and y subdivided into three swings each as well. The connector wave red x appeared to have been a triple three although it is not of any significance now. It served the purpose at the time of being the connector wave.
Secondly I will talk about the impulsive bounce from the March 2009 larger degree blue wave (II) lows. I would also like to mention you can see the guidelines for reading Elliott Wave structures here. From the March 2009 lows the larger degree red I subdivided into a clear five waves. There was enough room on the chart to show the subdivision the wave ((2)) lows to the wave ((3)) highs into five waves of smaller degree in blue. The analysis and conclusion continues below the chart.
PFIZER Monthly Chart $PFE
Thirdly I will mention where the longer term target area begins up at 55.60. I also will mention some of the technical aspects of why the red I and II is favored in place to give that target area. I once thought the August 2016 high could have been an extension of wave ((3)). However the pullback into the November 2016 lows was strong although relatively shallow by larger time frame standards.
The read on the momentum indicators like rsi suggested the dip to the November 2016 lows corrected the whole cycle from the March 2009 lows. A wave ((4)) dip would have only suggested it was correcting the cycle from the ((2)) lows. Furthermore since red wave II lows from November 2016, the rsi momentum indicator has taken the peak of the August 2016 highs. That does not usually happen in a wave ((5)). Hence the red wave I & II are positioned as shown.
In conclusion, ideally the stock will go higher wile above the February 2018 lows. To get the aforementioned longer term target area beginning at 55.60 is as follows. Take the Fibonacci extension tool on your chart platform and begin at the point of the March 2009 lows. From there go up to the point of the red I peak then back down to the red wave II low. That will give a target extension area where the current red wave III is equal to the red wave I at 55.60.
As mentioned that is where the target area begins. Higher would be more preferable as we usually see a wave III reach the 161.8 Fibonacci extension or better. That level comes in at 71.53. From that area it will only be expected to correct the cycle up from the November 2016 lows. Afterward it will be expected to be turning higher again.
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Lewis Jones of the ElliottWave-Forecast.com TeamBack