AbbVie’s Correction Appears to Be Over: Here’s Where the Stock Could Be Headed

AbbVie (ABBV) , the research-based biopharmaceutical company that was spun off from Abbott Laboratories (ABT) in 2013, has made an impressive move higher the past nine years. Recently, ABBV pulled back from an April high but the correction is showing signs it is over.

Should you be a buyer? Let’s check the charts.

In the daily bar chart of ABBV, below, we can see that the shares declined below the 50-day moving average line and its slope is cresting. The 200-day moving average line is still rising.

The On-Balance-Volume (OBV) line has moved sideways while prices declined and tells me that traders did not become aggressive sellers and I consider that a positive development. The Moving Average Convergence Divergence (MACD) oscillator quickly declined below the zero line but is now starting to improve.

In the weekly Japanese candlestick chart of ABBV, below, we can see a number of recent lower shadows in the $150-$140 area. The slope of the 40-week moving average line is positive.

The weekly OBV line has been steady the past two months and the MACD oscillator has only crossed to the downside for a take profit sell signal.

In this daily Point and Figure chart of ABBV, below, we can see that the shares reached a downside price target in the $144 area.

In this weekly Point and Figure chart of ABBV, below, we can see a potential $266 price target.

Bottom-line strategy: Traders could go long ABBV at current levels risking to $143. Our targets are $175, the round number of $200 and then longer-term $266 is possible.