Our Abbvie (ABBV) trade that we started Wednesday is still working. I’m looking at taking profits early next week on this swing trade. (June 28, 2019)
ABBV AGN ABBV AGN ABBV AGN ABBV
I am going back to the well here one more time on AbbVie ( NYSE: ABBV ). This is a stock that we jumped on first thing in the morning when we were doing live trading on Wednesday. I initially mentioned it on Tuesday in the afternoon saying, “It looks like $65.00 is going to hold so you might want to go ahead and take a little bit of stock and just kind of start a position because I suspected that the stock was going to rebound.”
The reason that it fell was not due to bad news. Typically, when you see a stock fall like this thing did it’s a biotech company and their one-hit-wonder didn’t get FDA approval or something. But here it was because AbbVie ( NYSE: ABBV ) bought Allergan ( NYSE: AGN ) and so there was just some reallocation of assets going on among large traders.
With that said, we got on AbbVie ( NYSE: ABBV ) first thing on Wednesday morning. The idea was to ride it up during the morning but then hang on to some and trade this kind of rubber band snapback until it peters out. This is the gap right here, this little rectangle, which I drew a couple of days ago. This is really the gap that I would expect AbbVie ( NYSE: ABBV ) to fill ultimately.
You look at Allergan ( NYSE: AGN ), it is also moving higher, so the market is liking this deal very much. By the way; nice to be an Allergan ( NYSE: AGN ) shareholder, right? Not only is the stock up higher then it was since it last November but it is moving even higher now, so that’s a good thing.
With AbbVie ( NYSE: ABBV ) what we are doing is this: We are looking at this on, say, the hourly chart and you can see that even on this time frame the stock is holding trend pretty easily. On the 15-minute time frame it is also holding trend pretty easily.
So what I would do on something like this is literally just draw a trendline like that. Stay long this stock until it starts to roll over a little bit. I think you are good in this stock for at least another $3.00 or so, at least $75.00 I think you are good on this.
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