Abbott Laboratories (ABT) has been declining since early August and this trend could continue a while longer. Still, with good support anticipated in the $39-$36 area, ABT is likely to find buyers and become attractive to investors again.
In this daily chart of ABT, below, we can see that the stock briefly broke above the April high in August but these gains were not long sustained. Prices turned down in August along with the On-Balance-Volume (OBV) line and the Moving Average Convergence Divergence (MACD) oscillator.
There is a price recovery in September that takes prices back to the underside of the declining 50-day average line. Last week ABT closed below the declining 200-day line. Barring a reversal, I would anticipate that ABT to work lower in the near term.
This weekly chart of ABT, below, also gives us reasons to anticipate further price weakness. ABT is back below the declining 40-week moving average line. The OBV line on this timeframe is pointed down, suggesting more aggressive selling.
The MACD oscillator just gave a liquidate longs sell signal and could go to an outright sell if it crosses below the zero line.
