Pharmaceutical giant AbbVie (ABBV) has been trading sideways the past 12 months but the longer-term trend is up. Let's drill down on the charts and indicators to see if we are headed for more sideways action or whether the longer-term trend will reassert itself.
In the daily bar chart of ABBV, below, I can see a bottoming pattern from May to October followed by a rally into December/January. Share prices have corrected into early February before steadying with a higher low in March. ABBV trades above the 50-day and the 200-day moving average lines. The trading volume shows a slight increase in the new calendar year.
The On-Balance-Volume (OBV) line is firm and appears to be leading the price action with the OBV line making a new high for the move up. The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero line in buy territory.
In the weekly Japanese candlestick chart of ABBV, below, I can see the past few years of price history. Prices have managed to work higher the past three years and weakness below the 40-week moving average line has been a buying opportunity.
The weekly trading volume looks like it has shrunk the past year while the weekly OBV line has been relatively stable the past year. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and looks poised to make an upside crossover and new outright buy signal.
In this daily Point and Figure chart of ABBV, below, I can see a downside price target in the $121 area. A trade at $158 or higher could refresh the upside.
In this weekly Point and Figure chart of ABBV, below, I can see a potential downside price target in the $140 area.
Bottom-line strategy: Aggressive traders could probe the long side of ABBV on strength above $158 risking to $145.
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