Pfizer (PFE) - Get Report closed Thursday at new February highs after gaining 1.9% on the day, setting the stock up well for more upside. This impressive move builds on Wednesday's powerful upside reversal.

Pfizer opened on Wednesday with a gap lower open and appeared headed for a deep pullback after failing to clear its initial February high. After hitting a new low for the week, Pfizer began to recover and by the close was back in the green. With yesterday's gain, the stock is now 3.75% above Wednesday lows.

It is looking more and more like a major bottom has been left behind near the $28.50 level. After an ugly breakdown in early January, the stock began the second leg of its steep selloff from the October high. This leg drove shares through numerous layers of support before dipping all the way down to the Aug. 24 spike low. After hitting the August low a little over two weeks ago, Pfizer began to steadily recover. Last week the stock stalled just below its 40-week moving average but has managed to move past this long-term indicator this week. For bulls, this is a very encouraging sign. If Pfizer can remain above this level, just above $30, a major double bottom at the 2015/2016 lows will be confirmed.

In the near term, Pfizer still has a few hurdles to clear. There is a very heavy layer of resistance in place near $31. This zone includes the stock's January, February, October and November lows. Just below is Pfizer's declining 50-day moving average. A takeout of this area will be an impressive show of strength. Until then, Pfizer investors should consider the stock a low-risk buy between last week's high of $30.07 and the 40-week moving average near $29.70.

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Disclosure: This article is commentary by an independent contributor. At the time of publication, the author was long PFE.