Abbott Laboratories (ABT) is expected to report earnings on Wednesday before the market opens. Let's check the condition of the charts and indicators before shareholders get the company report card.
In this daily bar chart of ABT, below, I can see that prices have rallied from late October. A quick retest of the October low can be seen in early November. Prices have climbed higher and now trade above the rising 50-day moving average line and above the bottoming 200-day moving average line.
The 50-day line is ready to cross above the 200-day line for a bullish golden cross buy signal. The trading volume has declined from the time of the October low and that is not a positive. The On-Balance-Volume (OBV) line moved up in November but down in December. The Moving Average Convergence Divergence (MACD) oscillator is in a take-profit sell signal.
In this weekly Japanese candlestick chart of ABT, below, I see a less than bullish picture. Prices are trading above the 40-week moving average line, but the slope of the line is still negative. There is a doji pattern in early January and this could be marking a top reversal until prices make a new weekly high close. The weekly OBV line has struggled to improve the past three months and that does not instill confidence. The MACD oscillator is about to cross above the zero-line if the rally keeps going.
In this daily Point and Figure chart of ABT, below, I can see that the software is indicating a potential price target in the $146 area. A trade at $104 could weaken this chart.
In this weekly Point and Figure chart of ABT, below, an upside price target of $150 is shown. Like the daily chart, a weekly trade at $104 could weaken the picture.
Bottom line strategy: I have no special knowledge of what ABT will be telling shareholders on Wednesday morning. I hope they beat their numbers, but the charts suggest a bit of caution may be needed in the days ahead. Weakness below $104 could precipitate further declines.
