Abbott Labs Breaking Out?

Published on Thursday, 09 September 2010 05:40 Written by Christian Paolinetti

New York, September 9th (TradersHuddle.com) - Shares of Abbott Laboratories (NYSE:ABT) closed the trading session at $50.45 just above calculated resistance at $49.77 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

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' stock was trading in a well defined range with support at $44.59 and resistance at $49.77, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Abbott Labs' stock is still near the broken resistance level, traders will be focusing on $49.77 to see if the stock holds the breakout without rolling over.