At midday Tuesday Pfizer Inc. (PFE) - Get Report  was the No. 2 gainer, just behind Merck & Co. , in the Dow Jones Industrial Average. The stock's 1.25% surge is an impressive extension of Monday's trend line break. As last week came to a close, PFE appeared stalled near heavy resistance at its 50/200-day moving average. This week the set-up has turned quite positive as a fresh rally leg appears to be developing.

Pfizer mounted a powerful rally off its multi-week lows back in late January. By early March the stock had gained more than 12% before running out of steam. PFE remained in a narrow consolidation pattern throughout the rest of March and April but by early May an ugly post-earnings breakdown sparked a fresh down leg. It wasn't until the second week of June, after retracing nearly 75% of the February rally, that PFE began to bottom.

On June 9th PFE surged over 3%, its best gain since November of last year. This news inspired ramp quickly ended PFE's steep pullback from the 2017 highs. The stock has been steadily moving higher since leaving behind layers of support. This week's trendline break has set shares up well for more upside. In the near term investors should consider this B+ rated company a low risk buy near current levels. Support rests from $33.30 to $32.80. A key upside hurdle will be the May high of $33.70. Once past this area a re test of the 2017 peak is very likely. On the downside, a close back below $32.40 would violate last week's low indicating more basing is ahead.

Pfizer shares closed up 1.3% to $33.99 early Wednesday afternoon.

Pfizer is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells PFE? Learn more now.

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Long PFE