ABBV closes within previous day's range after lackluster session
AbbVie Inc. (ABBV) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, ABBV ended the week 11.6% higher at 88.79 after gaining $1.06 (1.21%) today, strongly outperforming the S&P 500 (-0.92%). Today's close at 88.79 marks the highest recorded closing price since October 18th. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ABBV as at Nov 09, 2018):
Friday's trading range has been $1.97 (2.24%), that's below the last trading month's daily average range of $3.06. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ABBV.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 86.76 (S1). Prices are trading close to the key technical resistance level at 90.40 (R1). After having been unable to move above 89.71 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 89.53. The last time this happened on Tuesday, ABBV actually gained 3.94% on the following trading day.
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 89.71 where further buy stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for AbbVie. Out of 355 times, ABBV closed higher 53.24% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.21% with an average market move of 0.50%.