Pfizer ( PFE), on the other hand, is a good example of what happens when a stock falls through trendline support. The pharma giant spent most of 2013 in an uptrend, climbing around 24% from the first trading session in January until the end of April. But the break below support in mid-May signaled that PFE was due for lower levels.
Now Pfizer is testing trendline resistance, bumping up against the upper-end of a downtrending channel after rallying for a handful of days when the broad market failed to. That sounds like a selling opportunity for all of the reasons that Chevron's chart is a buy.But PFE gets the same caveat that CVX does before it makes sense to put real money on the line: Wait for a bounce. The 50-day moving average is right above the top of the channel on Chevron's chart; that's where I'd recommend keeping a protective stop.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV