ABT trade ideas
PfizerPfizer, like GSK is reporting on 1st August for their earnings. Another exciting stock caught in a range.
Since this stock has yet to trend but is still caught in the consolidation phase, actionable regions are maintained at those price balloons on the chart.
The argument for bullish price action is the same as GSK.
GSK - Resilience of Pharmaceutical Stocks Despite Obamacare Since our last bullish outlook on the pharmeceutical sector, Revelation Trading feels that this is one stock to look out for. Though it has caused a slight dent, the failure of Congress to repeal and replace Obamacare has not caused the pharmaceutical stocks in our radar to tumble. In fact, they have held their well defined ranges. That to us, is strength.
Also, with reference to our post on 24th Jun, the NBI has also been maintaining its upward momentum. Thus Revelation Trading concludes that apart from the media sensationalising the failure to replace Obamacare, there is no change to our analysis on the sector.
With regards to GSK, we are looking for actionable ideas above 43 with an initial stop loss established at 40, targeting 45.50 and above.
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
Can Harmonic pattern work on Stocks ??It has been awhile since I last traded stocks, I have been focusing on mainly on the Forex market. I would like to add on some stock analysis here from now on. Why Abbot as my first analysis, we have been giving our kids milk powder from Abbot since they were born ;) (no I am not a spokes person from Abbot) hahaha
Price completed the Bat pattern at around 37.80 and price immediately reacted to that level. Now I am hoping for a retest of the level for an approximately 1:2 risk reward trade.
Cheers
