In the No-Huddle Offense segment of Mad Money Thursday night, Jim Cramer discussed Abbott Laboratories' (ABT) latest rapid Covid-19 test.
The test, called BinaxNOW, is a $5, 15-minute nasal test. Those being tested will have their swab rubbed on a card that is then swiped and gives a false or positive reading with a 97% accuracy, the company said.
It's not 100% accurate, Cramer cautioned, so masks will still be necessary.
However, the results can be uploaded to Abbott's Navica mobile app, which can then be used like a pass to get into events, onto flights and into buildings. Cramer hopes it will get him into the Super Bowl if his Philadelphia Eagles make it.
Abbott Labs says it can start producing 50 million tests by October and Cramer reasons that "this is going to be the game-changer". If our country can get on board with this system, it will allow the economy to open much more and much faster than expected.
Not everyone is an Eagles fan, but let's check out ABT's charts.
In this daily bar chart of ABT, below, we can see that prices have closed below the rising 50-day moving average line. The 200-day moving average is rising and intersects down closer to $91.
The On-Balance-Volume (OBV) line has edged lower after a late August peak and suggests that traders have turned from aggressive buyers to aggressive sellers.
The Moving Average Convergence Divergence (MACD) oscillator did not make a new high when prices did thus creating a bearish divergence. The MACD oscillator is now close to the zero line, a possible sell signal when it crosses.
In this weekly bar chart of ABT, below, we can see a mostly positive picture. Prices are in an uptrend and trading well above the rising 40-week moving average line.
The weekly OBV line is positive and the MACD oscillator is still pointed up but has narrowed greatly and could cross to a take profits sell signal on this time frame.
In this daily Point and Figure chart of ABT, below, we can see a potential downside price target in the $96 area.
In this weekly close only Point and Figure chart of ABT, below, we can see a potential long-term price target in the $151 area.
Bottom line strategy: Taking a cue from weakness in the broad market, shares of ABT could slip lower to around the $95 area.
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