Abbott Labs has been in consolidation mode since mid April. Back on April 16th shares surged to new 2020 highs following a solid Q1 earnings beat: https://investorplace.com/2020/04/abbott-labs-earnings-abt-stock-jumps-on-q1-beats/. A few days later, after stretching the gain off the March lows to 61%, ABT began to consolidate. This healthy action is shaping up as a ten week bull flag. The overbought extremely overbought reading reached in April has been completely worked off. With solid support underneath we believe ABT is setting up well for a fresh rally leg.
Key upside hurdle is the June high. A close above $94.00 would clear the upper band of the current bull flag consolidation.
On the downside, a close back below last week’s low($87.00) would indicate more sideways action is ahead before a new bull move.
We are long ABT in some managed accounts.
ABT’s Q2 earnings report is due July 16(AM).