Last week we noted that Abbott Laboratories (ABT) broke out on the upside, writing that, "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."
Prices broke out but over the past few days but they have since have pulled back giving traders an opportunity to go long around $64. Let's check the charts and indicators again on this Action Alerts PLUS holding.
In the updated daily bar chart of ABT, below, we can see that prices remain above the rising 50-day simple moving average line. The 200-day moving average line is still rising and bullish. The volume last week was strong but the daily On-Balance-Volume (OBV) line has not (yet) made a new high for the move up to confirm the breakout. The Moving Average Convergence Divergence (MACD) oscillator is still above the zero line.
The bulls are still in charge with this weekly bar chart of ABT, below. Prices are still above the rising 40-week moving average line. The weekly OBV is still pointed up and close to a new high. The weekly MACD oscillator is close to a fresh outright go long signal.
In this Point and Figure chart of ABT, below, we can see the upside breakout and the pullback. The bullish price target of $78 is still being projected.
Bottom line: Hold longs. Continue to use a stop below $59. Add on strength above $66.