Pfizer Inc. (NYSE: PFE) shares were trading higher Monday after the company received FDA approval for its COVID-19 vaccine. The vaccine has been known as the Pfizer-BioNTech COVID-19 Vaccine, and will now be marketed as Comirnaty, for the prevention of COVID-19 disease in individuals 16 years of age and older.

Pfizer was up 3.02% at $50.19 at the last check.

Pfizer Daily Chart Analysis

• After receiving FDA approval, the company’s stock pushed higher and is flying. The stock may cool off after FDA approval hype slows down.
• The stock trades above both the 50-day moving average (green), and the 200-day moving average (blue), indicating recent sentiment in the stock has been bullish.
• Each of these moving averages may hold as an area of support.
• The $43 price level was a previous area of resistance where the stock struggled to cross above. Recently, the stock was able to cross this level and fly higher.
• The Relative Strength Index (RSI) has been sitting in the overbought area for a time and now sits at 71. An overbought RSI shows there is much more buying pressure than selling pressure in the stock.

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What’s Next For Pfizer?

Bullish traders want to see the stock continue to move higher. A reversal and cool-off period may occur in the stock’s future, but if the stock can consolidate while holding these gains, it could be ready for a possible push higher in the future.

Bearish traders would like to see the stock start to reverse and fall back lower. Bears want to see the RSI drop out of the oversold range and move lower back toward the middle line. Bears would also like to see the stock cross below both moving averages for a possible change in trend and sentiment.