After AbbVie’s Mixed Report, Here’s Our Updated Technical Strategy

Pharma biggie AbbVie (ABBV) reported to shareholders and analysts an earnings beat and a revenue miss Friday morning. Let’s check the condition of the charts and indicators to see if some action is needed.

In this daily bar chart of ABBV, below, we can see how the shares corrected lower from April and then bottomed out in the June to late September period. The shares firmed again in October and are now trading above the rising 50-day moving average line and above the rising 200-day moving average line.

The On-Balance-Volume (OBV) line declined from April to the end of August and then began a rise as traders shifted from being aggressive sellers to aggressive buyers. The Moving Average Convergence Divergence (MACD) oscillator turned bullish again from the middle of October.

In the weekly Japanese candlestick chart of ABBV, below, we see a positive-looking picture. The shares show us bottoming action in August and September and now prices are back above the 40-week moving average line.
The weekly OBV line has improved in September and October. The MACD oscillator is crossing upwards for both a cover shorts buy signal and soon a new outright buy signal.
In this daily Point and Figure chart of ABBV, below, we can see an upside price target in the $189 area.
In this weekly Point and Figure chart of ABBV, below, we can see a lower price target of only $163 — this could change with the price action.
Bottom-line strategy: Traders could look to buy ABBV around $150 risking to $140. Price targets are $163 and then $189.
Leave A Reply

Your email address will not be published.