A Fresh Look at Abbott Labs Still Shows a Long-Term Uptrend in Place

During Wednesday's Mad Money program, Jim Cramer told his viewers to never bet against a great brand and CEO. This is true of Abbott Laboratories (ABT) under the outgoing Miles White. This is a company you can trust, Cramer concluded, and they should be bought on any weakness. 

In this daily bar chart of ABT, below, we can see that prices have been in an uptrend the past 12 months. The rising 200-day moving average line has done a great job in identifying the uptrend and dips towards the 200-day line have been buying opportunities - like in December and October.

The daily On-Balance-Volume (OBV) line shows a bullish uptrend the past 12 months telling us that buyers of ABT have been more aggressive.

The Moving Average Convergence Divergence (MACD) oscillator has spent more time above the zero line than below it and it currently is in a buy or go long signal above the zero line.  

In this weekly bar chart of ABT, below, we can see a strong rise for the past three years. On this time frame the rising 40-week moving average line has done a great job in defining the uptrend. The 40-week line was tested successfully last month.

The weekly OBV line has risen the past three years and confirms the bullish price structure. The MACD oscillator has been above the zero line the past three years and is poised to cross to the upside again for another outright go long signal.  

In this Point and Figure chart of ABT, below, we can see that prices are pointed up towards their next price objective in the $93 area. 

Bottom line strategy: Traders could go long ABT here, risking a close below $79 while looking for $93 and then $100 on the upside. 

(Abbott Laboratories 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.)

Employees of TheStreet are prohibited from trading individual securities.