Today we're taking a look at Abbvie, NYSE:ABBV a popular U.S. pharmaceutical stock.
In the chart above, we've combined a momentum view with a support & resistance framework to point out high points and low points of the recent range ABBV has been trading in.
In combination with the momentum indicator, it appears as though the chances of a break of all time highs is likely.
For reference, here's what the chart looks like without the momentum overlay:
For our part, we like the idea of buying this stock into highs, while trailing the daily 3/3 pivot points:
This should provide a solid amount of upside, while limiting risk significantly.
If you like ABBV from a fundamental standpoint, then trailing the larger weekly 10/10 pivots is also an option, down to $135:
That's 50 points of risk, but for a longer term hold it appears probable that a 1:1 kick scenario should pay out nicely.
Good luck out there!
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Thanks @PropNotes, I'm liking this trade and your videos. Just wondering, are you playing the breakout above the previous high 10/10 pivot lines from 2022 and May 2023 in this case. The indicator shows the latest 10/10 pivot high in late 2024 around 154 and breakout from there is old news now. Just wondering if within your strategy you look back at the previous higher pivots not just the most recent. Which I think is what you're doing here?
PropNotes
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@HolRiz, Hey! Thanks for the comment, glad to hear you're liking what we put out!
That's correct, yes. In this idea, the general view is that there are a number of clustered pivots from the previous years between 170-180. Thus, a 'classic' breakout above that, controlling risk like we do in the videos we've done, risking to 3/3 pivots, would be the trade idea in a nutshell.
Alternatively, for a longer timeframe trade, you could just play the 10/10 weekly pivots, which would be a more macro 'investment' into the company, due to how long it would take to play out.
It would have been nice for the stock to take a break right before breaking highs so there would be an 'easier' place to risk, but sometimes breakouts just 'go' and you don't get nice risk.