ABBV dominated by bears dragging the market lower throughout the day
AbbVie Inc. (ABBV) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ABBV ended Wednesday at 89.78 losing $1.13 (-1.24%), underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 90.64, the market confirmed its breakout through the prior session low after trading up to $0.95 below it intraday.
Daily Candlestick Chart (ABBV as at Sep 16, 2020):
Wednesday's trading range has been $1.57 (1.72%), that's slightly below the last trading month's daily average range of $1.84. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ABBV.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 10th, ABBV actually gained 0.06% on the following trading day.
Prices are trading close to the key technical support level at 89.45 (S1).
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might speed up should prices move below the close-by swing low at 89.04 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for AbbVie. Out of 211 times, ABBV closed higher 54.50% 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 55.45% with an average market move of 1.39%.