AbbVie Inc. (ABBV)

Yesterday, SIA highlighted Johnson & Johnson, a drug name in the Yellow Neutral Zone of the SIA S&P 500 Index Report, as one to watch for its steady build-up of strength. Today, we focus on a drug name in the Favored Zone of the same report. AbbVie Inc. (ABBV), with a market capitalization of $383B, currently ranks 100th out of 505 in the SIA S&P 500 Index Report, rising 141 spots over the past quarter. The stock is up 10.28% this trailing quarter and 19.34% over the past six months. With a beta of only 0.16 and a 3.00% dividend yield, ABBV shows defensive characteristics that may appeal to investors if current market volatility continues. 

A look at ABBV’s Candlestick Chart shows that from early January 2021 to spring 2022, shares trended steadily upward, peaking in April 2022 near $150.00 before entering a sideways consolidation phase through to January 2024. During this period, shares traded between roughly $150 at the upper range and $120 at the lower. Following nearly two years of consolidation, ABBV broke out in January 2024, establishing a consistent pattern of higher highs that remains intact. The weekly candle from late September shows shares touching the mid-$240.00 range before closing closer to $230, suggesting some exhaustion among buyers as sellers began to step in. The stock has since pulled back from its strong 2024 advance and is now testing support around $210.00, the prior peak from March. This will be a key level to watch to determine whether ABBV can hold its uptrend.  

Reviewing the Point and Figure chart on a 2% scale for investment-grade analysis and more precise support and resistance levels, we focus on the chart activity since the summer. The shares formed a strong rising column of X’s spanning 14 boxes from July to October before encountering resistance at $240.61. During this advance, ABBV broke above its prior peak of $209.47 to reach a new high. The shares have since reversed into a downward column of O’s, retracing toward that same $209.47 level, which now represents the first line of support. A failure to hold this area could place the uptrend at risk, with the next support level being $197.38, close to the $200 psychological mark. Should the shares stabilise and turn higher, resistance lies at the 3-box reversal level of $231.27, followed by $245.42 near the recent high. With the shares approaching a key inflection point, it will be important to monitor how this move resolves. ABBV continues to display a positive Spread Double Top Pattern and maintains a positive SMAX score of 6 out of 10, indicating some relative strength across asset classes. 

AbbVie Inc. was founded in 2013 when we became a separate company from Abbott. AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. They strive to have a remarkable impact on people's lives across several key therapeutic areas: immunology, neuroscience, oncology, and eye care - and products and services across their Allergan Aesthetics portfolio. It is ranked 6th on the list of largest biomedical companies by revenue.