Pharmaceuticals remain a key theme amid the Covid-19 vaccine development rush
With sections of the global economy gradually reopening, it has been made apparent that a full recovery to normalcy will be impossible until a vaccine or treatment is found for Covid-19. This has resulted in renewed interest in the pharmaceutical space, as companies rush to develop a vaccine, in hopes that their vaccine developed will be the first successful and mass-produced one. Amid the intense race where over 100 companies are fighting for the global pipeline, a number of companies appear to be leading. Among which, there is Pfizer and Merck. Pfizer’s developed vaccine uses newer technology, which does not currently exist, known as messenger RNA. Meanwhile, Merck, just bought over an Australian vaccine marker on 27th May 2020, and entered the race as a visibly strong contender.
As a vaccine would change everything, amid the current Covid-19 pandemic, it presents a golden time to look at the thematic play of pharmaceuticals. There will be tremendous volatility to tap on, given that it remains highly uncertain towards which companies will eventually develop the winning drug. The constant news flow revolving about a Covid-19 vaccine will also keep up the hype towards the sector and bring about greater opportunities. Hence, with the front runner already in the first clinical testing phase, two more phases of clinical testing will be required before the drug will reach regulatory approval.
Pharmaceutical Sector Stocks: Pfizer
Technical Outlook (Powered by Trading Central):
Pfizer ST: The downside prevails as long as 37.8 is resistance. Our pivot point stands at 37.8.
Our Preference: The downside prevails as long as 37.8 is resistance.
Alternative Scenario: Above 37.8 look for 39.8 and 40.9.
Comment: The RSI is below its neutrality area at 50. The MACD is below its signal line and negative. The configuration is negative, Moreover, the share stands below its 20 and 50 day MA (respectively at 37.28 and 36.14)
Capitalise on the market opportunities and trade Pfizer CFD with Phillip MT5! Enhance your trading experience with these powerful features:
- Trade on the charts– View price charts and place trades in the same window
- Trade on hedge mode– Capture both long and short opportunities simultaneously with hedge mode on MT5
Comes with FREE renowned pattern recognition tools – Autochartist and Trading Central pattern recognition tools are integrated in Phillip MT5 and are available for free to customers with live accounts.