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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: 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).