How Far Can AbbVie Ride Humira to Achieve Further Gains?
Traders can probe the long side of ABBV at current levels and here's where they can get more aggressive.
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Pharmaceutical firm AbbVie ABBV is perhaps best known for its Humira drug, used to treat different types of arthritis and other conditions, and the stock has been climbing higher on the charts. Is it ready for an upside breakout or will it get turned back to the downside?
Let's check.
In this daily bar chart of ABBV, below, I can see that prices have been rallying from a low in November. Prices trade above the rising 50-day moving average line and above the now rising 200-day line. The trading volume looks more active in the past three months suggesting increased investor interest.
The On-Balance-Volume (OBV) line has surged higher from the middle of November to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has narrowed sharply and needs to be watched closer for a possible trend change.
In this weekly Japanese candlestick chart of ABBV, below, I can see that prices are pushing to the upper end of a large two-year consolidation pattern. An upside breakout from this large pattern is likely to produce a large upside move - nothing is guaranteed however. ABBV trades above the now rising 40-week moving average line.
The weekly OBV line has turned higher and is close to its own two-year breakout. The MACD oscillator crossed above the zero line in December for an outright buy signal.
In this daily Point and Figure chart of ABBV, below, I can see the breakout over the highs of 2023 and a price target in the $230 area.
In this second chart of ABBV, below, I used weekly price data with a five box reversal filter. Here the software suggests a potential price target in the $287 area.
Bottom line strategy: Traders can probe the long side of ABBV at current levels and get more aggressive on strength above $175.
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