AbbVie Is Poised to Move Even Higher
Shares of AbbVie (ABBV) - Get Report are performing quite well this morning. The stock is rising just over 2% and is trading just shy of last week's high. With solid footing developing underneath and room to run on the upside, AbbVie is setting up well for a fresh rally.
AbbVie's strong rally off the May low, which held the 200-day moving average, carried shares to new 2016 highs. This sharp rally stalled on June 2 just shy of very heavy gap resistance near $62.80. The stock immediately began a pullback phase, and with the help of the Brexit flush, it was retesting the 200-day moving average once again. Following ABBV's very shallow two-day loss in late June, the stock came roaring back. By last Wednesday, the stock had recovered all the Brexit damage and had left behind what is now shaping up as an important bottom near the May/June lows.
In the near term, ABBV bulls should take a much more positive view of the stock. It is trading just above a key support area near $61.50. ABBV is a low-risk buy above this area. A close back below $60 would be indicate that more basing will be needed before new 2016 highs can be reached. As a new rally leg develops, ABBV investors should keep a close eye on the $65.80 area. This heavy resistance zone was put in place nearly one year ago after an ugly breakdown gap. It may take some considerable work for ABBV to power past this level.
Of note, ABBV is scheduled to report its second-quarter results on July 29.
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