Abbott Labs, an Action Alerts PLUS holding, reported its first-quarter earnings this week.
When we last looked at the charts and indicators of ABT on March 26 we wrote that, "We were risking a decline to $107. ABT reached our $125 target in February and maybe some of you took some money off the table. The charts are more mixed now so traders should raise stops to $114 on the balance of their position."
Let's check on things again after Tuesday's downside price gap.
In the updated daily bar chart of ABT, below, we can see that the shares gapped lower Tuesday. Prices made a spinning top, which is a balance between buyers and sellers as the real body is small -- neither side was able to move the stock that far.
Wednesday's candle is white, which is bullish -- so far the close is likely to be higher than the open. This shows no follow-through or carryover selling from Tuesday's gap lower. This is a clue that the selling was temporary. The slope of the 50-day moving average line is flattish and the 200-day moving average line is still rising.
The On-Balance-Volume (OBV) line is still pointed up from early March and that is constructive. The Moving Average Convergence Divergence (MACD) oscillator has narrowed close to a bearish crossover but that may not happen if prices continue to rally from here.