PFE, Pfizer, appears to be in the middle of an ascending right triangle, a bullish formation. The stock does not have the strength to break upper resistance. However, as the stock goes lower, at each stage, buyers support the stock at higher levels, creating higher lows. As the stock trades closer to the end of the triangle, buying pressure may be so strong, that the stock could breakout possibly on good volume.
Many technical buyers would like to buy the breakout above the triangle, ideally when the breakout is accompanied by good volume.
However, some could argue that the patient investor (who cares more about fundamentals than technicals or charts) can invest within the triangle. The justification of this is that a stock like Pfizer (PFE) pays a good dividend yield (currently at 4.30%). While waiting for the stock to breakout, the patient investor can reinvest dividends at lower prices.
For a real life example of a breakout off an ascending triangle, see Hansen Natural (HANS) example right here.
Here's a current day stock chart of Pfizer with the aid of the tools at StockCharts.com .
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