Pfizer $PFE ended the 7/29 session on a sharply bearish note after 2 major event risks. Here's a summary of its most recent earnings report and an announcement to merge with generic drug maker Mylan $MYL.Trading Pfizer Shares on Earnings, Tie-Up With Mylan...First, Pfizer reported second-quarter results in which non-GAAP earnings of 80 cents a share topped expectations by 5 cents. Revenue of $13.26 billion fell 1.6% year over year and missed analysts' estimates by $160 million. However, earnings weren't the only thing for investors to focus on, as the company also announced a merger deal with Mylan (MYL - Get Report) . For its part, Mylan reported earnings too, beating on earnings and revenue expectations. But that's really not the focus at this point. Mylan and Pfizer's Upjohn unit will merge in an all-stock deal. The end result will leave Pfizer shareholders owning 57% of the combined entity, with Mylan shareholders owning the other 43%. It's no surprise Mylan is Real Money's Stock of the Day. The companies are hoping to spur some growth -- Mylan's revenue grew just 1.3% in the quarter, while Pfizer's revenue declined as the generic drug business continues to see pricing pressure. While Mylan stock is understandably jumping higher, up more than 12% in midday trading, Pfizer stock closed lower by almost 4%. Let's look at the chart to see where the latter may be heading....PFE Daily Chart(click to enlarge)Continuing Consolidation:- The reaction to the earnings and MYL merger announcement suggests that the market is not ready to become bullish on PFE. - Before this reaction, price had broken above the cluster of 200-, 100-, and 50-day simple moving averages (SMA). Furthermore, the RSI was still above 40, which reflected maintenance of the bullish momentum.- Also, price action in early July had broken above the previous 2019 high.- However, these bullish signs are now old news. Price action today suggests a failed bullish attempt, which suggests further consolidation/bearish correction.- In this scenario, we might see a lower low than the previous 2019 low around $39. - To me, I think the $37-$40 area would be a great area to monitor for support. - On the weekly chart, this area would be supported by a previous resistance and a rising trendline.- Also, the 200-week SMA is just below around $36. - I am preparing dry powder for $40. PFE Weekly Chart(click to enlarge)