ABT runs into sellers again around 71.83
Abbott Laboratories (ABT) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
ABT ended the week -5.54% lower at 69.95 after losing $1.59 (-2.22%) today, but still slightly outperforming the S&P 500 (-2.33%) following today's NFP report. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ABT as at Dec 07, 2018):
Friday's trading range has been $2.64 (3.68%), that's far above the last trading month's daily average range of $1.75. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ABT.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on November 19th, ABT lost -2.10% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices are trading close to the key technical support level at 68.82 (S1). The market closed back below the 50-day moving average at 70.44 for the first time since November 27th. After having been unable to move above 71.54 in the previous session, Abbott Laboratories ran into sellers again around the same price level today, missing to move higher than 71.83.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling could accelerate should prices move below the close-by swing low at 68.38 where further sell stops might get triggered. Further selling could move prices lower should the market test November's nearby low at 67.83.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Abbott Laboratories. Out of 282 times, ABT closed higher 54.61% 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 62.41% with an average market move of 1.03%.