Abbott Laboratories (ABT) is breaking out on the upside today. We talked about this at the end of May. I wrote that, "The MACD oscillator is in a bullish configuration above the zero line. Prices might retest the flat 50-day moving average line but a bullish OBV line is probably foreshadowing higher prices for ABT in the months ahead." Let's look at some new charts for price targets and risk points.
In this updated daily bar chart of ABT, below, we can see that ABT did retest the rising 50-day simple moving average line in June and July but prices gapped up to new highs today. The rising 200-day moving average line is bullish. The daily On-Balance-Volume (OBV) line has been rising since last August and is just short of a new high. A rising OBV line is a sign of aggressive buying. The daily Moving Average Convergence Divergence (MACD) oscillator has turned up above the zero line for a fresh outright go long signal.
In this three year weekly bar chart of ABT, below, we can see that prices are above the rising 40-week moving average line. From late 2015 to early 2017 between $46 and $36 there is a significant base pattern. The weekly OBV line has been rising since late 2016 and tells us that buyers of ABT have been more aggressive for a long time. The weekly MACD oscillator is very close to a fresh outright go long signal.
In this Point and Figure chart of ABT, below, we can see a double top breakout with a $78 upside price target.
Bottom line: If you are long ABT continue to hold and raise sell stop protection to a close below $59 or where the 200-day moving average line intersects. Not yet long ABT or looking to buy more? Try to buy a dip or pullback towards $64. $78 is our upside price target.