4 Trade Ideas for AbbVie: Bonus Idea
Here is your Bonus Idea with links to the full Top Ten:
AbbVie, $ABBV, comes into the week approaching resistance and at the 50 day SMA. The Bollinger Bands® have squeezed in. The RSI is rising toward a move back into the bullish zone over 60 with the MACD moving into positive territory. There is resistance at 183.50 and 186.50 then 190 and 193 before 196 and 199.50. Support lower is at 180 and 175.75. Short interest is low at 1%. The stock pays a dividend with an annual yield of 3.62% and will begin trading ex-dividend January 15th.
The company is expected to report earnings next on January 31st. The January options chain shows open interest build from 180 to a peak at 170 then fall back on the put side. On the call side it is biggest at 200 then 180. The February chain has biggest open interest at the 175 put and sees it spread from 170 to 220 on the call side. Finally, the March chain has biggest open interest from 170 to 160 on the put side and spread from 175 to 210 on the call side.
Trade Idea 1: Buy the stock on a move over 183.50 with a stop at 175.75.
Trade Idea 2: Buy the stock on a move over 183.50 and add a February 180/170 Put Spread ($4.57) while selling the March 195 Call ($2.07).
Trade Idea 3: Buy the January/February 190 Call Calendar ($2.31) while selling the February 170 Put ($2.18).
Trade Idea 4: Buy the March 170/185/200 Call Spread Risk Reversal ($1.24).
If you like what you see sign up for more ideas and deeper analysis using this Get Premium link.
After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which as we ring in the New Year and ring out a fabulous 2024, saw the week showing some disappointment in equity markets end in an early year rebound.
Elsewhere look for Gold to continue to consolidate the major move higher while Crude Oil rises in consolidation in the lower end of a broad range. The US Dollar Index looks to continue the breakout higher while US Treasuries consolidate at 14 month lows. The Shanghai Composite looks to reverse its uptrend with a break lower while Emerging Markets are reversing their uptrend.
The Volatility Index looks to remain low making the path easier for equity markets to the upside. The charts of the SPY and QQQ continue to look strong on the longer timeframe. On the shorter timeframe both look a little weaker but finding support. The IWM is now recovering and so far, maintaining the uptrend. Use this information as you prepare for the coming week and trad’em well.