Health care is an area we think could eventually get a huge AI boost - especially within pharmaceuticals, biotech, and medical equipment. AbbVie Inc. (ABBV) is a pharmaceutical firm with strong exposure to immunology and oncology, writes John Eade, president of Argus Research.
Under the surface, the number of very constructive charts for small- and mid-cap biotech names is compelling. After the July CPI and PPI data last week, the probability of no Fed action on September 16 has increased to 65%, too.
AbbVie Inc. (ABBV)
Source: TradingView
ABBV has been in a consistent, but somewhat volatile, uptrend since its major bottom in 2019 at $47. The stock has traced out many higher highs and higher lows since then and has been supported by its 10- and 21-month exponential averages.
Following a strong performance during Q3 25, the shares peaked at an all-time high of $237 in October. ABBV then drifted sideways/lower, dropping to $196 in late April. The stock then popped back to the $225 region by early June, paused, and blasted off on June 22, rising to a new high of $263 by July 29.
Price then traced out a bullish flag to the 10-week exponential on a decrease in volume and bounced off that support. We would put a stop-loss just below chart and moving-average support at $231. With no overhead resistance, we would take some profits at $270.
