Abbott Labs Closing in to Resistance

Published on Friday, 20 January 2012 05:40 Written by TradersHuddle Staff

New York, January 20th (TradersHuddle.com) - Shares of Abbott Laboratories (NYSE:ABT) are trading very close to calculated resistance at $56.84 with the current price action closing at just $55.43 placing the stock near levels that make it difficult to buy.

Abbott Laboratories (NYSE:ABT) develops, manufactures, and sells a broad and diversified line of health care products and services. The Company's products include pharmaceuticals, nutritional, diagnostics, and vascular products. Abbott markets its products worldwide through affiliates and distributors. The company was founded in 1888 and is based in Abbott Park, Illinois.

Abbott Labs' current stock range is defined by current calculated support defined at $48.96 and by the resistance level at $56.84, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Abbott Labs, as the stock is well above support, however, as the stock pulls back towards $48.96 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $56.84 then traders will get an opportunity to enter Abbott Labs stock by establishing a position as the stock moves to a higher range.