AbbVie Inc. (ABBV) was reviewed a few days ago and I was bullish projecting "that a triple from the $60 base or $180 is the next possible upside price target. Longs should probably raise their sell stop protection to a close below $100." Prices have corrected this month with the broad market weakness but our suggested stop point has not been reached. Traders should still be long and looking for higher highs. Let's check the charts and indicators again.
In this daily bar chart of ABBV, below, we can see that prices have pulled back modestly after their late January strength. Prices successfully tested the rising 50-day moving average line.
The On-Balance-Volume (OBV) line has been moving higher the past year and signals more aggressive buying with heavier turnover on days when the stock has closed higher. The Moving Average Convergence Divergence (MACD) oscillator has crossed to a take profits sell signal but this could be reversed in the days ahead if ABBV rallies again.
In this weekly bar chart of ABBV, below, we find no bearish signals. Prices are above the rising 40-week moving average line. The weekly OVC line has been rising since late 2016 and only shows a small dip currently. The weekly MACD oscillator is bullish but the two moving average lines that make up this indicator have begun to narrow.
In this Point and Figure chart of ABBV, below, we can see the current sideways consolidation pattern. A rally above $116.52 would improve the chart and a decline below $105.49 may produce some selling. A $98.79 price target is shown but I do not anticipate it will be reached.
Bottom line: The trend is still up for ABBV so surprises, if there are any, are likely to be in the direction of the trend. I continue to favor the upside of ABBV and closes above $115 and $116 could be enough to spark a new leg higher.
