While I didn’t get down this far when covering the chart of the top components of XLV (healthcare sector ETF) in the video that I just posted, ABT (Abbott Laboratories), the 9th largest component of XLV by market-cap, offers an objective long entry here at long-term support (see weekly chart) and/or on a breakout above the downtrend line. Price targets & suggested stop shown on the daily chart below, with T3 likely to come in around a backtest of the 200-day MA’s, assuming this trade pans out in the coming months.
ABT daily April 30th
I’ve decided to suggest a relatively tight stop (relative to the profit potential for the final price target, T3), as the stock is currently testing key long-term support of the intersecting 90ish price support & the primary uptrend line off the 2011 lows. Also worth noting is the fact that ABT is at the most oversold reading on the weekly RSI (21.17) since its bear market low back in 2002, with the stock gaining 980% from there.
ABT weekly April 30th
If interested in ABT and/or any other healthcare stocks, check out the video posted earlier today for the key levels & developments to watch for in XLV & some of the other top components.