Pfizer Inc. (NYSE:PFE) shares are trading higher Monday after the company announced it will acquire Arena Pharmaceuticals Inc (NASDAQ:ARNA) for $100 per share. UBS analyst Colin Bristow also upgraded the stock from Neutral to Buy and raised the price target from $52 to $60.
Pfizer was up 3.83% at $54.80 at time of publication Monday afternoon.
See Also: Why Pfizer Shares Are Trading Higher Today
Pfizer Daily Chart Analysis
- Shares look to have broken out of what traders call an ascending triangle pattern after being able to break above the $50 level. The stock then went on to hold this level as an area of support before pushing higher again.
- The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bullish sentiment and each of these moving averages may hold as an area of support in the future.
- The Relative Strength Index (RSI) has been consolidating above the middle line for the past couple months and now sits at 65, showing the market for the stock has seen more buyers than sellers.
What’s Next For Pfizer?
Pfizer stock is breaking out of an ascending triangle pattern and may be ready to see a further bullish move in the coming weeks. As long as it can continue to hold above the $50 level it will show the stock still has strength and may be ready to see a strong bullish move. Bears in the stock are hoping to see it drop down below the higher low trendline for a possible beginning to a long-term downtrend.
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