Pfizer Plunges 3.98% to $23.87 as Bearish Technicals Trigger Heavy Selling

Pfizer (PFE) declined 3.98% in the latest session, closing at $23.87 on elevated volume of 81.1 million shares—nearly double the recent average—as sellers overwhelmed buyers amid a decisive breakdown below key technical levels.
Candlestick Theory
Recent candlestick patterns reveal deteriorating sentiment, with the latest session forming a long bearish candle that cleanly penetrated the $24.00 support. This follows a failed bullish attempt on 2025-09-11 (a doji star after a 1.18% gain), which signaled hesitation that resolved downward. Key resistance now emerges at $24.85–$25.00, aligning with recent swing highs and volume congestion, while critical support rests at $23.50, a level that held during the July–August consolidation.
Moving Average Theory
The moving average structure reflects entrenched bearish momentum, with the 50-day MA ($24.73) crossing below both the 100-day MA ($24.95) and 200-day MA ($25.18) in August—a "death cross" confirming a negative long-term trajectory. Price currently trades 7.5% below the 200-day MA, while the sequential ordering of MAs (short < medium < long-term) reinforces the downtrend’s sustainability, suggesting rallies may face resistance near the 50-day MA.
MACD & KDJ Indicators
The MACD (12,26,9) histogram has entrenched in negative territory since mid-August, with the signal line consistently above the MACD line—a configuration supporting bearish momentum. Concurrently, the KDJ oscillator (with %K at 22 and %D at 34) indicates oversold conditions but shows no bullish divergence, implying limited immediate reversal potential. Notably, KDJ has failed to breach 50 during September bounces, confirming weak upside momentum.
Bollinger Bands
Bollinger Bands (20-day SMA, 2σ) have expanded sharply, with price closing below the lower band ($24.10) for the first time since early August—a volatility event often preceding short-term consolidation. The 20-day SMA ($24.92) is accelerating downward, while the lower band’s abrupt drop signals heightened downside risk. A mean-reversion bounce toward $24.50–$24.60 appears probable but would face resistance from the lower band’s new position.
Volume-Price Relationship
Volume patterns validate bearish sentiment, with distribution days (price declines on above-average volume) outnumbering accumulation 4:1 over the past month. The latest session’s volume spike confirms institutional selling pressure. Notable volume surges have coincided with breakdowns near $24.00 (2025-08-06) and $25.00 (2025-07-15), affirming these as psychological resistance zones. Sustained closes below $23.90 require volume contraction to signal selling exhaustion.
Relative Strength Index (RSI)
The 14-day RSI (28.4) has reached oversold territory, aligning with levels that triggered minor rebounds in June and May 2025. However, this is not a reversal signal in isolation—oversold conditions can persist during strong downtrends. A bullish divergence (price lower lows while RSI forms higher lows) would strengthen reversal prospects, but no such signal is yet apparent after the latest plunge.
Fibonacci Retracement
Fibonacci levels derived from the major 2024-2025 swing high-to-low ($30.43–$21.97) show confluence with recent price action. The critical 78.6% retracement level at $23.78 was breached decisively in the latest session, opening downside toward the psychologically significant $23.00 level. Prior resistance-turned-support at $25.20 (61.8%) failed to hold in August, while the 50% level ($26.20) now serves as robust long-term resistance. The breakdown below $23.78 projects technical targets to $23.00.
Confluence and Divergence
Confluence appears across indicators, with RSI oversold readings, Bollinger Band expansion, and the $23.78 Fibonacci breach collectively signaling intensified selling pressure. However, divergences exist in momentum: while MACD remains entrenched bearish, KDJ shows modest oversold dynamics that could support a technical bounce. Volume-price divergence is absent—significant volume increases have accompanied the breakdown, reinforcing its validity. Should Pfizer consolidate near $23.50–$24.00 without volume expansion, this may indicate seller fatigue.