Finance

Abbott Laboratories (ABT): Detailed technical analysis and trading indicators

Abbott Laboratories (NYSE:ABT) gained 1.07% in yesterday’s session, going up from its prior closing price of $54.34 to $54.92, and has now recorded rally in 5 consecutive sessions. Many in the market will be closely watching whether this winning streak is sustainable or take a temporary pause for the next couple of trading sessions. The stock price went upward in 8 of the last 10 days and has generated 6.79% during the last two weeks. Trading activity decreased by -0.47 million shares, and in total, 5.11 M shares exchanged hands for about $280.58 million. It should be noted that increasing price and decreasing volume show lack of interest and this is a warning that something has fundamentally changed.

Inside ABT’s Recent Trend

Abbott Laboratories (ABT) lies in the upper part of a strong rising trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $55.09 will firstly indicate a stronger raising rate. Short-term traders are predicted to see a rally of 10.04% over the course of a quarter and, with 90% chance the price will be floating in the range of $56.25 and $60.62 in this timeframe.

Abbott Laboratories Technical Signals



ABT has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $53.69 and $51.55. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Wednesday September 27, 2017, which calls for additional surge until the stock forms a new pivot point high. There was a decrease in volume but the price rose. This is usually not interpreted as a good sign as traders widely believe falling volume should see declining stock. Investors should be watching the price action like a hawk in the coming sessions.

Abbott Laboratories (NYSE:ABT) Support And Resistance Levels

Abbott Laboratories (ABT) recorded volume accumulation so there will probably be a surplus of buyers at $53.64. It seems to be blessed by the accumulated volume as it meets no resistance above current level and favorable trading conditions will help the stock to show strong performance in the coming days.




Abbott Laboratories (ABT) Risk Assessment

The number of shares changed hands in the stock is good, indicating the interest and low risk associated with it. In the most recent session, the stock price hovered around $0.76 (1.40%) between intraday high and intraday low. Each day in the past 1 week, the average volatility remained at 1.04%.

The stock is in overbought condition based on RSI(14) readings and sits at the top end of the trend. In general, this will advocate a great exit point for short term investors, but in some cases it takes more time for the trend to shift while the stock is being overbought and the Relative Strength Index keeps going higher. Regardless, the high RSI together with the trendposition increases the risk and higher daily movements (volatility) should be expected. The stock correction is due. The decline may accelerate to the downside in the near term but it is reasonable to consider what the key support levels may be that would support a bounce back to the upside for stock.

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