Will ABBVIE INC breakout?

A possible breakout setup was detected on ABBVIE INC (NYSE:ABBV) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:ABBV.

Technical analysis of NYSE:ABBV

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 7 out of 10 to ABBV. Although ABBV is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• ABBV is one of the better performing stocks in the Biotechnology industry, it outperforms 75% of 638 stocks in the same industry.
• In the last month ABBV has a been trading in the 146.57 - 159.14 range, which is quite wide. It is currently trading near the high of this range.
• When compared to the yearly performance of all other stocks, ABBV outperforms 66% of them, which is more or less in line with the market.
• ABBV is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.

How does the Setup look for NYSE:ABBV

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:ABBV this score is currently 8:

Besides having an excellent technical rating, ABBV also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 156.48, a Stop Loss order could be placed below this zone.

How to trade NYSE:ABBV?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Of course, there are many ways to trade or not trade NYSE:ABBV and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.