The market has a bid to it today, but we would use strength to reduce exposure to AbbVie (ABBV), which is poised for a second consecutive close below our recommended stop-loss level despite today’s rebound.
Within the current bear market cycle, it is getting harder to find stocks that have long-term uptrends intact according to the weekly cloud. One of them is World Wrestling Entertainment (WWE):
In August, WWE cleared important resistance from the 2020 high on positive long-term momentum. The breakout supports an extension of the long-term uptrend, and continuation of relative strength versus the S&P 500 Index (SPX).
Within the bullish long-term context, WWE has regained short-term momentum after holding support from the breakout point and daily cloud (not shown) near $67. The uptick in short-term momentum is reflected in the bullish upturn in the weekly stochastics, shown in the chart below.
A measured move projection generates an upside target of ~$81. A stop-loss level can be gauged by support near $67, which is defined by the daily cloud model (not shown) and former long-term resistance.
World Wrestling Entertainment (WWE, $70.90):
Target: $81
Stop-Loss: $67