Pfizer is back on solid ground.

Pfizer has been consolidating in a narrow bull flag for the last five weeks. The bulk of this pattern has been below the stock’s 40 week moving average. A close above last week’s high($36.60) would push PFE back above its 40W MAV.

We consider PFE a low risk buy near current levels. A second leg of the post earnings breakdown(7/29) may be on the way. Initial target for a fresh rally leg would be the April low($38.40). On the downside a close back below $35.00 would violate last week’s low indicating more basing will be needed before the stock can mount a fresh rally.

At time of publication we are long PFE in most managed accounts.