In this article we will analyze Abbott Laboratories' stock chart using technical analysis. We will look at its trend and what the charts are telling us.
ABT is one of those stocks where investing in it is better than trading it. As you will see in the stock charts below, this stock has blessed those who have held it for a long time. But here and there it does give traders a trading opportunity.
Let us take a look at the daily chart of ABT first. Just by looking at the chart we can tell that this stock is of an A grade investment quality. The reason is this stock has been staying above the daily 200 MA for a very long time.
Secondly, this stock is trending upwards in the long term.
Whenever a stock is above its rising 200 MA and is in a long term uptrend, one should consider it for investing or trading. Stocks only go up for a reason : Its future prospect is good.
While this stock is more of an investing vehicle, nevertheless, traders can still find many trading opportunities. I have highlighted many of them on the chart above. You can study them and apply it to other stocks in the future.
Despite the massive plunge in the stock market, this stock was able to weather it better than most stocks. It formed a double bottom pattern at the 200 MA and broke above a recent downtrend line and moved higher.
Let us now turn to the weekly chart of ABT.
Notice how the stock stays above the weekly 20 MA and 50 MA for a very long time? This is a picture of strength and power. This is a picture of an A grade investment quality stock.
There has been 2 box breakouts in the weekly chart.
And recently it is setting up for another weekly box breakout. Boxes are congestion areas which the stock is able to breakout of. In the future, the box acts as support.
Stocks that are in a long term uptrend are likely to go higher.
The monthly chart of ABT above shows that this stock is in a long term uptrend.
The current bullish run has been going on for quite a long time since the monthly ascending triangle breakout.
An interesting thing to note is that there are 2 monthly bottoming tails that has formed recently. Every time the stock sells off in the daily chart, it has managed to go back up. This tells us that the stock is rejecting to go lower. Once the stock trades above the highs of those 2 bottoming tails (which it has done), it is likely to go higher.
As long as ABT trades above the rising monthly 20 MA the bullish run in this stock is likely to continue.
Charts with the Freestockcharts.com label are courtesy of Freestockcharts.com
Charts with the investing.com logo are courtesy of Investing.com powered by Trading View
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