Biopharmaceutical firm AbbVie (ABBV) posted better-than-expected earnings numbers Thursday morning and traders have pushed prices higher, similar to the way they have with Meta (META) .
Let's check out the charts and indicators to see the stock's overall health.
In the daily bar chart of ABBV, below, I can see that share prices have spiked higher Thursday. ABBV trades above the bottoming 50-day moving average line and below the flat 200-day moving average line.
The trading volume looks like it has been more active since January but the On-Balance-Volume (OBV) line has moved lower from December and suggests that sellers of ABBV have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator has just moved above the zero line for a new outright buy signal.
In the weekly Japanese candlestick chart of ABBV, below, I can see some positive technical developments. Some of the recent candles in May-July are showing lower shadows as traders reject the lows. Dips towards $130 are finding buying interest (support).
The weekly OBV line is gaining ground and tells us that buyers of ABBV are being more aggressive. The MACD oscillator is close to a cover shorts buy signal.
In this daily Point and Figure chart of ABBV, below, I can see a potential upside price target in the $183 area.
In this weekly Point and Figure chart of ABBV, below, I see the same $183 rice target as the daily chart above.
Bottom-line strategy: Traders looking to buy ABBV should be patient and wait for ABBV to pull back and correct Thursday's strength.
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