May 24 Chart of the Day - AbbVie Pharmaceuticals

AbbVie Pharmaceuticals (ABBV) stock price has dropped over $20 in the past month from roughly $164 to $142 but that's somewhat typical for firms like this.  While buy and hold investors may be in it for the long haul, options traders often pile in on a particular strike price and expiration date.  Both have made money over the years and both have lost.

From a technical analysis perspective one could say that the weekly chart has formed a "bullish pennant" but the proof is in the pudding as they say...

If this chart is going to continue its bullish ways then it better happen soon otherwise, if price continues much further below from here than the pattern will have broken.

So do the bulls have it in them to once again step in and push price higher?  Maybe the option traders think so given the 150 June 30 calls have the highest open interest while virtually none of the strike prices to the downside have much to speak of.

But one can never know if option traders are speculating or hedging against a current position. 

Take a look at the charts and let us know what you think.  

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