Technical indicators currently tested are likely to allow AbbVie shares to rally again.
The research-based biopharmaceutical company displays high-quality fundamentals. It has an attractive valuation with a P/E ratio of 13.3x for 2015 and an appealing yield of 3.43%. Reuters estimates shows its outstanding growth potential and its rising profitability: EPS should increase by 290% in 2015.
Technically, the stock is in an oversold situation. Prices came back on their lower ascendant trendline on both daily and weekly data. The stock seem to start a technical rebound at this level. Thus, the stock could find new energy and rise towards the next USD 61.7 resistance.
Therefore, it seems opportune to take a long position on AbbVie and target in a first place the USD 61.7 resistance. Traders should not insist below the USD 55.5 support and a stop-loss order should be placed under this threshold.