AbbVie (ABBV) has moved in a wide range so far today. Let's check out the charts and indicators to see if this could be an inflection point.
In this daily Japanese candlestick chart of ABBV, below, we can see the quick rally in early February and the sharp retracement in recent days. Prices are well off their lows today and could even close back above the rising 50-day moving average line.
The 200-day moving average line has an upward or positive slope but the On-Balance-Volume (OBV) line and the Moving Average Convergence Divergence (MACD) oscillator have mirrored the action of the price line. Trading volume was not much to talk about during the pullback so the assumption is that investors largely stayed with their long positions.
In this weekly Japanese candlestick chart of ABBV, below, we can see a mixed picture. Prices are in an uptrend above the rising 40-week moving average line.
The weekly OBV line maybe stalled in the short-run but not far from making a new high for the move up.
The MACD oscillator has narrowed greatly but may or may not actually cross to the downside. Its final outcome will depend on the price action going forward.
In this daily Point and Figure chart of ABBV, below, we can see that the software has projected a possible downside target in the $81-$80 area. Prices could decline lower but the message to me at this juncture is that nearby support may hold.
Bottom line strategy: At this point in time I would look for ABBV to stabilize around $85 and then try the upside when the broad market starts to improve.
(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.)
