Fairlead Strategies Idea Generator
AbbVie (ABBV) & Updates (FCX, KR, PSQ, UEC)
This week’s pullback has been a drag on most stocks, including Kroger (KR) and Uranium Energy Corp. (UEC) which fell below their stop-loss levels today, respectively $47.90 and $4.08. We would close long positions if they look poised for a second close below those levels tomorrow afternoon. We would give Freeport-McMoRan (FCX) room to its 50-day MA (~$29.60). For the inverse ProShares Short QQQ ETF (PSQ), we are revising our target higher to $15.02 from $13.89.
To take advantage of relative strength, our newest idea is AbbVie (ABBV), which has outperformed recently with other defensive health care stocks.
ABBV looks poised for an oversold bounce within its long-term uptrend, which remains intact per the weekly cloud model. An oversold upturn in the weekly stochastics and a loss of downside momentum in weekly MACD support a recovery.
In its ratio versus the S&P 500 Index (SPX), ABBV has a short-term breakout after holding support at its rising 200-day moving average. The action suggests ABBV should resume its YTD trend of outperformance after having lagged this summer.
Resistance from prior peaks near $157 can be used as an upside target. A tight stop-loss level can be gauged by the weekly cloud, currently near $140 and rising, which we would uphold on a weekly (Friday) closing basis.
AbbVie (ABBV, $142.51)
Target: $157
Stop-Loss: $140
Reward/risk = 5.77 !!!