Shares of Pfizer (PFE) - Get Pfizer Inc. Report  gained over 2% on Wednesday, extending the rally off the late February low to 7.75%. This impressive move has lifted the stock back to within striking distance of a major resistance area. If this week's rally can extend past the January high investors could see a powerful breakout.

Since the September lows, the company has been bouncing around in a narrowing range. This consolidation phase marked a significant low in early November as the election neared. The stock received quite a jolt immediately after the Trump victory but the drug concern was unable to put any distance on its 200-day moving average. The steep pullback that followed drove the stock down to within pennies of the huge post-election breakout gap. After the 200 day held the upside again in mid-December and early January, Pfizer appeared headed for major support near the $35.50 to $30 area.

Pfizer regained its footing as February began and has been steadily climbing since. As of Wednesday's close, the stock will be very close to a breakout point. A clear takeout of the $33.70 area would drive the stock through an important overhead trendline that links the October, November and January highs. With shares well below overbought levels, despite the current February rally a new bull leg will have plenty of room to run. In the near term, Pfizer investors should keep a close eye on the January peak near $33.70. The stock should be considered a low-risk buy near current levels. On the downside, a close back below last week's low of $31.90 would send a clear message that the 200-day moving average remains extremely heavy.

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