Abbott Laboratories started a major rally in 2013, culminating at around $52 in 2015 (A). In mid-2015, the stock fell below its 40-week Moving Average (40wMA – B) and settled in a horizontal trading range mostly between $37 and $46 (dashed lines). Recent price action above the top of the range (C) suggests a breakout, renewed investor interest and the start of a new up-trend. Behaviour indicators including the rising 40wMA confirm the positive status. A better entry may occur near around $46-47 but only a decline below around $44 would be negative. Point & Figure measurements provide targets of $54 and $59. The large trading range (dashed lines) supports higher targets.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc.). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: http://www.decisionplus.com/
Monica Rizk
Ron Meisels