Pfizer (PFE) and BioNTech (22UAy.DE)(BNTX) could receive authorization for their COVID-19 vaccine by Christmas, given their final test results showing 95% effectiveness and no serious side effects. And while the vaccine course has reached its final stages, what will be the impact of this news on Pfizer and BioNtech stocks and on the pharmaceutical sector in general?

Analysis of the Pharmaceutical Sector

From the RRG chart, we can see how the pharmaceutical sector (XLV) is showing a general weakening, and starting from the green sector (LEading) it is moving towards the sector of weakness (LAGGING). Undoubtedly the effect of the vaccine rush and the great competition made up of announcements and denials is currently penalizing the performance of the sector.

Here is the RRG chart of the healthcare sector, with the pharmaceutical sector to which Pfizer and BioNtech shares belong highlighted in red. From the chart it is clear that the sector is improving, moving from the weakness quadrant to the strengthening quadrant, with the bullish strength quadrant close in direction.

Pfizer and BioNTech shares analysis

As you can see from the chart, Pfizer shares are in a bullish channel, although in recent months they have not produced a significant change in prices. Nevertheless, a decisive overcoming of the $ 37 area and a re-support with, for example, a bullish pinbar could open a phase of more sustained rises.

Pfizer actions

The BioNTech stock (22UA), on the other hand, appears more dynamic in its rise, so much so that in recent days it has reacted in a very important way on the 50-day moving average, signaling some reversal candles. In this case, in my opinion, the rise could be near and it could be more consistent if it exceeds the € 100 area.

 BioNTech shares

Conclusions

The healthcare sector and the pharmaceutical industry, in particular, could generate significant gains in the coming months, under the pressure of a COVID-19 vaccine, and Pfizer and BioNTech stocks could be the biggest beneficiaries of this bullish momentum.