AbbVie Stock Has Been Consolidating, Will It Surge or Decline?

• AbbVie will acquire Mitokinin for $110 Million.
• The ABBV stock price has declined by over 4% in a week.
• The company’s net revenue has increased by over 120% (YOY) in the previous quarter.

The current market price of the Abbvie stock-147.90

AbbVie stock has been consolidating in a range for more than a year. The stock is trading in a tight range of $165 on the upper side and $130 on the lower side. The upper level has been tested thrice and the lower level has been tested five times. It indicates that the lower level got weaker over time. 

AbbVie stock is currently forming a range inside the broader range. The upper level of the range is present at $154 and the lower level is present at $143. AbbVie Inc. will soon acquire MItokinin for $110 Million with an exclusive right purchase. The stock price has declined by over 4% in a week.

AbbVie company’s revenue has declined by over 9% and 4% in the previous two quarters. However, the net income of the company has declined by 94% (YOY) in Q1 2023. It surged by 120% in Q2 2023. The Net debt of the company has marginally reduced in the last two years.

Inspect the ABBV Daily Chart

ABBV stock price is facing strong resistance from the level $153 level to the $154 level. It is created when the stock has formed a big gap on the chart. Since then, the stock price has been trying to fill this gap, but failed badly so far. The stock price is now consolidating within the range of $143 and $154. If we look closely at the chart, we can see that the price has formed a small gap between $142.45 and $143.79.

We have discussed the nearest resistance level of the ABBV stock. Now, we will discuss the other supply and demand of the stock. The ABBV stock’s other resistance level is present near the $163-$164.43 level. The second support for the price is present near the level of $137.89 and the other one is at the $129.49-$130.83 level. 

Are the Indicators Bearish for the Chart

Exponential Moving Averages

The Abbv stock price is trading below the 50-day and 200-day Exponential Moving Averages. However, the stock has recently witnessed a golden crossover on the daily chart, which is a bullish crossover. It indicates that the price can be consolidated here much longer than expected.

Relative Strength Index

The Relative Strength Index is currently placed below 50 level, which is a bearish sign. The slope of the RSI is sharply coming down, which indicates that the price is now favouring the bears.

Conclusion

AbbVie stock price has been consolidating in a range for so long, and now the indicators have turned bearish on the stock. If the price breaks the $154.78, it can try to achieve the $163 level. If it breaks  $142.45, it can move towards the $137.89 level.

Technical Level

Resistance – $154.78 and $163

Support – $142.45 and $137.89

Disclaimer

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