Abbott Laboratories (ABT) had a nice pop after announcing earnings, all the way up over that 115 mark of resistance. Since then, the stock has stumbled a bit, while buyers decide whether or not they want to step back in. The stock has now fallen to a support level around 112.5 where, as you can see in the video, the stock tested 3-4 times over the past year.
This creates two very real trading possibilities. On the one hand, there’s the bullish case that if the stock can break above and hold 115, the sky is the limit and we should expect to see higher prices come into play. However, on the other hand, if the stock breaks down that level of support of 112.5 then traders should expect lower prices.
Keep this trade, or trades, on your watchlist as we close out another exciting trading week to see if there is still one more big trade left in the chamber.
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Good Luck With Your Trading!
Christian Tharp, CMT
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