ABT dominated by bears dragging the market lower throughout the day
Abbott Laboratories (ABT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ABT finished Wednesday at 105.70 losing $0.88 (-0.83%), slightly 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 106.17, the stock confirmed its breakout through the prior session low after trading up to $0.51 below it intraday.
Daily Candlestick Chart (ABT as at Sep 16, 2020):
Wednesday's trading range has been $1.71 (1.6%), that's below the last trading month's daily average range of $2.54. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ABT.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 105.58 (S1). After having been unable to move above 107.53 in the previous session, Abbott Laboratories ran into sellers again around the same price level today, failing to move higher than 107.37. The last time this happened on September 11th, ABT actually gained 0.95% on the following trading day.
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the nearby swing high at 107.53 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 103.73 where further sell stops could get activated. As prices are trading close to September's low at 102.42, downside momentum might speed up should the market mark new lows for the month.
Among the eight 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 Abbott Laboratories. Out of 284 times, ABT closed higher 58.80% 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 64.08% with an average market move of 1.32%.