AbbVie (ABBV) is the 'Stock of the Day' at Real Money. The company announced that they and Allergan (AGN) have entered into definitive agreements to divest brazikumab (IL-23 inhibitor) and Zenpep (pancrelipase). These agreements are in conjunction with the ongoing merger process of both the companies. Despite weakness in the broader market, ABBV is trading higher in the pre-market. Let's check out the charts.
In this daily bar chart of ABBV, below, we can see that prices have weakened for much of January. ABBV made a peak in December and closed below the cresting 50-day moving average line.
The level of trading volume (histogram below the price chart) shows an increase as prices declined and the daily On-Balance-Volume (OBV) line has moved lower below the lows seen in December telling us that sellers of ABBV have become more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator turned lower back in November for a take profits sell signal. This indicator is very close to crossing below the zero line for an outright sell signal.
(AbbVie is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells ABBV? Learn more now.)