Looking at the technical picture of the AbbVie Inc stock (NYSE: ABBV), we can see that after hitting the area near the 113.38 hurdle in January, the price drifted heavily to the downside. Currently, ABBV is balancing slightly above its key support area, at 101.55. At the same time, the stock is trading below a short-term tentative downside resistance line drawn from the high of January 20th. For now, we will take a neutral approach, as we also wait for the company’s earnings report, which is set to be released today, before the US opening bell.
If the stock goes ahead and breaks below that support area, at 101.55, this will confirm a forthcoming lower low, potentially opening the door for further declines. ABBV might then slide to the 98.64 hurdle, marked by the low of November 20th, which may provide a temporary hold-up. Even if the stock rebounds somewhat, as long as it continues to trade below the aforementioned downside line, the downside scenario might be the main one for now. Another drop could bring the share price below the 98.64 hurdle, possibly clearing the way towards the 96.29 obstacle, or to the 94.70 level, marked by the low of November 9th.
The RSI, although a bit flat, remains below 50. The MACD is still pointing lower, while sitting below zero and well below its trigger line. The two oscillators support the above-discussed scenario, as they show downside price momentum.
Alternatively, if the stock breaks the aforementioned downside line and then pushes above the 106.18 barrier, marked by the high of January 27th, that may invite more buyers back into the game, possibly clearing the way to some higher areas. ABBV could then travel to the 108.57 hurdle, marked by the low of January 26th, which might stall the uprise for a bit. That said, if the buying doesn’t stop there, the share price might easily drift to the 111.59 obstacle, or to the 113.38 level, marked by the highest point of January.
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