ABT closes higher for the 3rd day in a row
Abbott Laboratories (ABT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ABT finished the week 1.76% higher at 91.47 after gaining $1.08 (1.19%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.71 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 90.61, the share confirmed its breakout through the previous session high after trading up to $0.93 above it intraday.
Daily Candlestick Chart (ABT as at May 22, 2020):
Friday's trading range has been $1.83 (2.02%), that's far below the last trading month's daily average range of $2.54. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for ABT.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on May 14th, ABT actually lost -2.06% on the following trading day.
After trading down to 89.71 earlier during the day, Abbott Laboratories bounced off the key technical support level at 89.71 (S1). The failure to close below the support could increase that levels importance as support going forward.
While the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the close-by swing high at 93.00 where further buy stops might get triggered.
Among the 10 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 168 times, ABT closed higher 55.36% 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 67.86% with an average market move of 0.98%.