4 Trade Ideas for Abbvie: Bonus Idea

• Posted by Greg Harmon
• on September 25th, 2023

Here is your Bonus Idea with links to the full Top Ten:

Abbvie, $ABBV, comes into the week at resistance. This is also the 61.8% retracement of the last leg lower, a good sport to reverse should it do so. The RSI is in the bullish zone but pulling back with the MACD positive but leveling. There is resistance at 154.25 and 156.25 then 158 and 158.75 before a gap to fill to 160.75 and 162.75 above that. Support lower comes at 152 and 149.25 then 147.50 and 146.25 before 144.50 and 142.50. Short interest is low under 1%. The stock pays a dividend with an annual yield of 3.88% and will begin trading ex-dividend on October 12th.

The company is expected to report earnings next on October 26th. The October options chain shows the biggest open interest at the 145 put strike and the 155 call. In the November chain open interest build from 170 to a peak at 130 on the put side and from 150 to a peak at 170 on the call side. The December chain has biggest open interest at the 145 put and at the 160 call strikes.

Abbvie, Ticker: $ABBV

Trade Idea 1: Buy the stock on a move over 155 with a stop at 152.

Trade Idea 2: Buy the October/November 160 Call Calendar ($1.40) and sell the October 145 Put (85 cents).

Trade Idea 3: Sell the stock short on a move under 152 with a stop at 155.

Trade Idea 4: Buy the October 150/145/142 Broken Wing Put Butterfly ($1.00).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the September FOMC meeting in the books and one week left in the 3rd Quarter, saw equity markets run into a buzz saw in reaction to Powell’s comments.

Elsewhere look for Gold to continue in consolidation while Crude Oil continues the uptrend. The US Dollar Index continues to drift to the upside with a potential longer term break out higher while US Treasuries pullback in their downtrend. The Shanghai Composite looks to continue in long term consolidation along with Emerging Markets.

The Volatility Index looks to remain low and stable making the path easier for equity markets to the upside. Their charts, however, are looking weak especially on the shorter timeframe. On the longer timeframe both the QQQ and SPY are on the cusp of a downtrend but with positive momentum. The IWM continues to slowly tighten the range in consolidation. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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