Abbott Laboratories (ABT) was last covered in mid-July, where we said, "The charts and indicators for ABT are constructive and I would look to buy ABT at the current market level, risking below $46 with $60 as the upside price target."
With prices surging higher this morning -- past $54 and towards our $60 technical price target -- it is a good time to check the charts and indicators. (ABT is a holding of Action Alerts PLUS.)
In this daily bar chart of ABT, below, we can see that prices remain above the rising 50-day simple moving average line, as well as the rising 200-day line. Corrections over the past twelve months have been shallow or sideways affairs, which tells you that investors are bullish and are willing to buy minor weakness.
The On-Balance-Volume (OBV) line has been moving up since early December, signaling aggressive buying. The OBV line has confirmed all the new highs along the way, and I look ahead for this indicator to also make a new high -- as prices are doing now. The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line and pointed higher.
In this weekly bar chart of ABT, above, we can see a well-developed base pattern in 2015, 2016 and early 2017. Prices are above the rising 40-week moving average line. The weekly OBV line has been rising all year and the weekly MACD oscillator is bullish.
This Point and Figure chart, above, of ABT confirms our $60 price target.
Bottom line: We assume traders are long from our July update. Stay long, and consider raising sell-stop protection to a close below $50.