Pharmaceutical giant Pfizer ( PFE) has been an orderly trade as well in 2013. Shares of the $206 billion drug maker have climbed 14.5% year-to-date, on top of a hefty 3.34% dividend yield. Despite a recent reversal in Pfizer's price action, traders are looking at a buying opportunity from here.
Pfizer, like JPMorgan, spent most of the last couple of quarters trading within a tight uptrending channel. But buyers got overzealous in mid-April, and shares got overbought by moving through the top of the price channel. Now we're seeing a reversion to the mean for PFE as shares drop back to support at the channel's lower trendline. More specifically, the mean that PFE is reverting to is the 50-day moving average, which has been a stellar proxy for uptrending support and is, in fact, literally a mean.The best time to buy a stock in an uptrend is on a bounce off of support, so PFE's test of support this week presents an attractive buying opportunity. That said, it's critical to wait for the bounce - we want to see that Pfizer can still catch a bid here. I'd recommend taking a long position on this stock's next white-bar day.