When poring over charts this week I needed to discover a inventory with low threat, a secure dividend and a possible reversal brewing. With each search I stored coming again to this one – Pfizer . It is a inventory that has pushed traders loopy through the years. It had a magical run throughout Covid however has given again all these beneficial properties. Nonetheless, from a threat/reward perspective the time feels proper to revisit the commerce. You may see that full spherical journey in worth within the 10-year weekly chart under. Massive pharma is mounting a comeback, and Pfizer appears poised to partake within the motion. Shares seem to have discovered a backside and are on the verge of a big reversal. The setup We’re holding it quite simple this week. Let’s assessment our reversal guidelines: Worth has damaged above its downtrend on a weekly foundation going again to its 2024 peak Close to-term development is now up with a constant collection of upper lows for a yr Worth is above a rising 50-week shifting common Momentum indicator in its RSI trending larger and never overbought After we look at worth motion every day, we see a clearer image of this potential turnaround. On this one-year chart above we have now just a few technical components in play demonstrating threat/reward situation at these ranges. Assist to the draw back is clearly outlined across the rising 50-day shifting common Shares are forming an ascending triangle with a $30.50 upside goal on a breakout A bullish golden cross has fashioned The commerce Purchase shares on latest weak point whereas Pfizer stays on this present uptrend. On a breakout above $27.50, anticipate a rally to $30 as shares claw again to their 200-week shifting common at $32. The danger/reward is not optimum over the close to time period. If worth falls under $25 one could need to step away and revisit one other time. Nonetheless, given the worldwide backdrop and up to date volatility, plus the inventory’s 6.4% dividend yield, this commerce may very well be one which helps you sleep higher at night time. The sector, particularly massive pharma, stays wholesome and tends to behave as a secure haven throughout market pullbacks. Different shares throughout the sector like Johnson & Johnson , Merck and Eli Lilly proceed to behave effectively and now Pfizer, from a technical perspective, seems poised to affix the social gathering. — Jay Woods, CMT with Chase Video games DISCLOSURES: Woods owns shares of Pfizer. All opinions expressed by the CNBC Professional contributors are solely their opinions and don’t replicate the opinions of CNBC, or its guardian firm or associates, and should have been beforehand disseminated by them on tv, radio, web or one other medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click on right here for the complete disclaimer.