You don't have to be an expert technical analyst to see what's going on in Pfizer (PFE). Shares of the drug giant have been climbing higher in a well-defined uptrend for the better part of the last year -- and shares are up more than 14% year-to-date alone. Clearly, PFE is a relative strength leader in the healthcare sector right now.
So how do you trade it?
There's a glut of buyers sitting underneath that trend line support line in PFE -- and it's spurred reversals the last four times shares approached the trendline. Those support and resistance levels give us a high probability range for this stock to trade within. And as you might expect, the ideal time to be a buyer is on a bounce off of support.When you're looking to buy a stock within a trend channel, buying after a bounce off of support makes sense for two big reasons: it's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). While that means that some patience will be required for an entry in Pfizer, that patience will pay off.
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