Abbott Labs Soars to New Heights: The Stock's Next Technical Targets

Here's where ABT could be headed next.

Shares of Abbott Laboratories (ABT) are trading higher Thursday in reaction to news that the FDA granted emergency use authorization for the company's 15-minute Covid-19 test that will be priced at just $5.

Let's check out the charts for the next fifteen minutes and see what sort of results we get. 

In the daily bar chart of ABT, below, we can see that the shares made a dramatic "V" bottom in March. By late April prices had soared to new highs. After a May/June correction prices began to climb again. ABT is trading above the rising 50-day moving average line and above the rising 200-day moving average line.

The On-Balance-Volume (OBV) line shows gains from late March to tell us that buyers of ABT have been more aggressive. This confirms and supports the bull story.

The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since the middle of April and looks poised to turn higher.

 

In the weekly bar chart of ABT, below, we can see a durable uptrend over the past three years. Prices are above the rising 40-week moving average line. Trading volume has been active.

 

The weekly OBV line has been pointed up and the MACD oscillator shows a bullish alignment above the zero line. 

 

 

In this daily Point and Figure chart of ABT, below, we can see an upside price target in the $110-$111 area, which the shares could reach Thursday.

 

In this weekly Point and Figure chart of ABT, below, we can see a potential upside price target in the $134 area.

 

 

 

Bottom-line strategy: Existing longs should set their sights on the $134 area as the next price target. Raise sell stops to a close below $97.

(Abbott Labs is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells ABT? Learn more now.)

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