ABBV - cautious with this dip

11 Nis 2024

ABBV is a great company. It's part of my long-term portfolio and is one that I've been able to manage well with technical analysis.

I am not adding unless I see price fall to 155 or until we get to August/September where it hits its seasonal low. This drawdown has risk of continuation for a number of reasons:

• Momentum was falling as price was rising. Drawdowns after this type of divergence usually have more challenging recoveries.
  
• The candle body on 4/4 is the spread in price to go against the long term uptrend. These are strong warnings of a reversal.
  
• It lost the YTD AVWAP and is struggling to hold the VWAP anchored to the November low. If this area fails we'll see investors begin to sell to protect profit.
  
• There is a large airgap down to 155., which is the lowest that price can fall while remaining in a primary uptrend.
  
• A fibonacci time zone drawn at momentum crossovers in April 2023 and June 2023 gives a view of an overall price cycle. The next time zone is August 2024, which aligns to a season