Abbott Laboratories (ABT) is scheduled to report its third-quarter numbers on Oct. 20, so let's check and see if this fundamental news could shake ABT out of the technical doldrums.
In the daily Japanese candlestick chart of ABT, below, we can see that the shares have declined the past five weeks or so. ABT broke below the rising 200-day moving average line and now prices are testing the underside of this longer-term indicator. A close back above the line will be a positive development.
The On-Balance-Volume (OBV) weakened in September and shows some improvement this month. The Moving Average Convergence Divergence (MACD) oscillator looks ready to cross to a cover shorts buy signal.
In the weekly Japanese candlestick chart of ABT, below, we can see two recent lower shadows suggesting to us that traders are finally rejecting the downside of ABT.
The weekly OBV line shows improvement and the MACD oscillator needs further strength.
In this daily Point and Figure chart of ABT, below, we can see a potential upside price target in the $175 area.
Bottom-line strategy: I have no special information about what ABT may report next week but the charts suggest you shouldn't be too bearish ahead of the report.
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