ABT pushes through key technical resistance level
Abbott Laboratories (ABT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ABT ended Thursday at 75.81 gaining $5.06 (7.15%), outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 72.63, the stock confirmed its breakout through the previous session high after trading up to $3.34 above it intraday.
Daily Candlestick Chart (ABT as at Mar 26, 2020):
Thursday's trading range has been $4.97 (6.99%), that's slightly below the last trading month's daily average range of $5.48. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for ABT.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, ABT gained 1.52% on the following trading day.
Buyers managed to take out the key technical resistance level at 74.02 (now S1), which is likely to act as support going forward.
Although Abbott Laboratories is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Abbott Laboratories. Out of 166 times, ABT closed higher 55.42% 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 67.47% with an average market move of 0.82%.