One of those is Pfizer (PFE - Get Report), the big pharma giant that's behind blockbuster drugs like Celebrex and Viagra. Like Abbott, Pfizer is forming an inverse head and shoulders pattern. Unlike ABT, Pfizer's setup is less far along, giving investors an opportunity to get in earlier.
It's worth noting that patterns like Pfizer's inverse head-and-shoulders setup don't work because of mystical forces or the shape of the setup; at the end of the day, it just comes down the buyers and sellers, supply and demand. For Pfizer, we know that there has historically been a glut of sellers at an above the $23 level (the neckline), so a breakout above $23 sends an important message: It tells us that increasingly eager buyers have absorbed all of the supply of shares that previously were offered at that level.
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