In his No-Huddle Offense segment of Mad Money Monday evening, Jim Cramer pondered what would likely happen if Joe Biden wins the White House.
One thing we know is the government would get tougher on Covid-19, Cramer said, and that means the possibility of another partial lockdown of restaurants and bars to get this pandemic under control. Cramer added that testing companies like Abbott Laboratories (ABT) should be added to your portfolio.
Let's check out the charts of ABT.
In this daily bar chart of ABT, below, we can see that prices have been in an uptrend from late March. ABT has been trading sideways since early September within the uptrend. Prices have traded around the rising 50-day moving average line in recent weeks.
The On-Balance-Volume (OBV) line has been moving sideways to slightly higher since July suggesting that traders have been slightly more aggressive buyers the past few months.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is very close to the zero line which implies very little "trend strength".
In this weekly bar chart of ABT, below, we can see that prices have been in a longer-term uptrend. ABT is trading above the rising 40-week moving average line.
The weekly OBV line is positive with just a slight tilt lower in October.
The MACD oscillator is crossing to the downside for a take profits sell signal.
In this daily Point and Figure chart of ABT, below, we can see a downside price target around $100.
In this weekly Point and Figure chart of ABT, below, we used close only price data. Here the chart shows a potential price target around $153.
Bottom line strategy: ABT could soon resume its uptrend. Aggressive traders could go long at current levels risking a close below $99 - just below the potential Point and Figure target.
(Abbott Labs is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells ABT? Learn more now.)
