Abbott Labs (ABT) : After the long, now comes the short ??
I started analysing stocks about 4 months ago with Abbott Labs. Went in long at $37.80 and got out at $40.50 with a $2.70 profit. I said it could go higher and it did. Now trading at about $45
Pattern identification
ABT has completed a bearish Bat pattern and it does not seem ready to fall.
First some word of caution (seems to want to go higher)
- Price seems to be supported by the PRZ
- last few days price action is a bit weird, open low and closed higher (green candles)
- RSI is already down to 56 and price has not dropped at all
Trade Execution
Ideally can go short when the price breaks below the PRZ, and together with RSI turning bearish when it goes below 50. RSI did show a bearish divergence, but this can easily come up once more to show us another bearish divergence.
Let's watch this together
Pattern identification
ABT has completed a bearish Bat pattern and it does not seem ready to fall.
First some word of caution (seems to want to go higher)
- Price seems to be supported by the PRZ
- last few days price action is a bit weird, open low and closed higher (green candles)
- RSI is already down to 56 and price has not dropped at all
Trade Execution
Ideally can go short when the price breaks below the PRZ, and together with RSI turning bearish when it goes below 50. RSI did show a bearish divergence, but this can easily come up once more to show us another bearish divergence.
Let's watch this together
High chance it will retest the $45.80 high or higher.
Will want to see the RSI going up to the oversold region and start to tick down.
Not taking this trade for the time being