4 Trade Ideas for AbbVie: Bonus Idea

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

AbbVie, $ABBV, comes into the week back at a 61.8% retracement of the drop from January to the low in June. It is also making a higher high after a higher low. The Bollinger Bands® remain open to the upside. The RSI is deep in the bullish zone with the MACD positive but level. There is resistance at 155 and 158.50 then 160 and 162.50 before 165 and 166.50. Support lower comes at 154 and 152. Short interest is low under 1%. The stock pays a dividend with an annual yield of 4% and will start trading ex-dividend on January 12th.

The company is expected to report earnings next on February 7th. The January options chain shows the largest open interest at the 150 then 145 put strikes. On the call side it is large at 155 and 165 and 170 but biggest at 175. In the February chain it builds from 155 to a peak at 140 then tails to 120 on the put side. On the call side it builds much more steeply from 135 to a peak at 155 then drops to 170. March open interest is focused at the 160 out and the 175 and 165 call strikes.

AbbVie, Ticker: $ABBV

Trade Idea 1: Buy the stock on a move over 155.50 with a stop at 152.

Trade Idea 2: Buy the stock on a move over 155.50 and add a January 152.50/150 Put Spread (93 cents) while selling the February 170 Calls (59 cents).

Trade Idea 3: Buy the January/February 160 Call Calendar ($1.68) while selling the January 149 Put ($1.10).

Trade Idea 4: Buy the February 145/155/165 Call Spread Risk Reversal ($1.86).

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After reviewing over 1,000 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with only 4 trading days left in 2023, saw equity markets continue to show strength.

Elsewhere look for Gold to continue its move higher while Crude Oil extends a short term move to the upside. The US Dollar Index continues to drift to the downside while US Treasuries continue their short term uptrend. The Shanghai Composite looks to continue the trend lower while Emerging Markets are back in broad consolidation.

The Volatility Index looks to remain very low and stable making the path easier for equity markets to the upside. Their charts continue to look strong, especially on the longer timeframe. On the shorter timeframe there is now some rotation from adding to the QQQ and SPY to putting money into the IWM. 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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