Abbvie is a spin-off of the famous American healthcare company Abbott Laboratories. Abbvie specializes in pharmaceutical research while Abbott focuses on medical devices and diagnostics. Abbvie has a host of drugs under its portfolio and it sells these products in more than 170 countries. The company has currently been in the news for its lopinavir drug Kaletra. This drug, in combination with other medication, has been used to treat COVID-19. Abbvie’s drugs help treat ailments such as arthritis, cancer, and leukemia. The company has a strong research capability that allows the development of new drugs. Its long-term prospects look bright.

The monthly 7-year chart of Abbvie shows a gradual uptrend that the stock has been in, forming higher lows over the years. After reaching a peak in early 2018, the uptrend was reversed and the price fell significantly by 44% and hit a low in August 2019. The price broke through an important resistance line at 70 and touched the bottom of the long-term trend.

However, since September 2019, the stock has bounced back up and is currently up 41% from its August 2019 lows. Recently, in April 2020, the stock retraced from the support-resistance line at 70 and is now poised to rise to 115-120 levels. A long position can, therefore, be initiated with a stop loss at the bottom of the long-term trend, just below the 70 support-resistance line.

 Positions taken today at $92.67 with a stop loss 31.4% below at $63,58.  Take profit point at $128 giving a profit of 38%