Abbott Labs (ABT) approaches support

Abbott Labs appears headed toward support on the hourly chart (180 d 1h). The $54.7-54.8 range represents support from a trendline defined by the lows of ABT price action since August 2011; it’s the red dashed line in the screenshot below.

Additionally, $54.8 is an exceptionally well-defined line of horizontal support, stretching back to October 21, 2011; it’s marked below as a solid blue line.



Zooming into the intra-day movement of the past month (20 d 5m), the $54.7-54.8 range also finds support. A price channel extending from 4.1.2012 currently has its lower line at approximately that price; it’s the dashed yellow line below.



Betting on a bounce in ABT from about $54.8, particularly if that price is reached in the midst of a broad market that is not in significant decline, appears to offer a relatively high probability of favourable resolution.