After the Tariff Flush, a Fresh Look at AbbVie Pharma

---

In my 2025 Outlook, I picked AbbVie Pharmaceuticals as one to watch this year. 

Here is what I wrote: 

AbbVie (ABBV) AbbVie primarily works in immunology, oncology, neuroscience, eye care, and virology. It is also the parent company of Allergan, the maker of Botox. Botox is one of the most well-known and widely used aesthetic treatments globally, primarily known for its cosmetic use in reducing wrinkles and fine lines. Hence, it fits in the “Vanity” trade. The monthly chart shows the correction to the 23-month moving average with huge support above 160. Note-pays a dividend 

Incredibly, the low on April 9th was 164.39. 

ABBV held the support level on the 23-month chart and the January 6-month calendar range low. 

If I liked it in December when I wrote the Outlook, and the tariff flush brought the price right down to major support, which held,  

Do I still like the stock? 

Long answer is that 

1. While a close over 178 Monday confirms the reversal pattern, ABBV still well underperforms the SPY 
2. It is in the crosshairs of pharma tariffs 
3. There are several hurdles of resistance to cross: the January 6-month calendar range high, the 200-DMA and well above, the 50-DMA. 
4. The phase is distribution which is better than bearish. 
5. In Real Motion, we are close, but not quite over the Bollinger bands for a mean reversion trade 

Nonetheless, I like the support level, especially since the November 2024 low shows a potential long-term double bottom. 

If we go back to July 2024, the low was also around 163-164. 

We KNOW the risk. 

I might consider a small position should the reversal confirm as such. 

However, if ABBV has truly made a bottom, we should see it clear and close over 182. 

 

Educational purposes only, not official trading advice.  

For more detailed trading information about our blended models, tools, and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more. 

 

-----Get your copy of
Plant Your Money Tree: A Guide to Growing Your Wealth

Grow Your Wealth Today and Plant Your Money Tree!

"I grew my money tree and so can you!"- Mish Schneider 

 

Mish in the Media-Want to see more? All clips here  

Business First AM All About Uranium 04-14-25 

BFM Radio Malaysia Tariff uncertainty looms large while market tries to find footing 04-11-25 

BNN Bloomberg A 2-part take on conditions and picks. This is part 2 04-11-25 

BNN Bloomberg A 2-part take on conditions and picks. This is part 1 04-11-25 

Business First AM All About Bitcoin 

Schwab Network Unforgiving markets require a tactical rule-based trading approach 04-10-25 

NYSETV Does a Softer Inflation Number Matter? 04-10-25 

Kitco News Why wait on gold and silver right now 04-08-25 

Fox Business with Charles Payne Strategies During a Market Meltdown 04-04-25 

 

Coming Up:  

April 23 The Street.com 

April 28 Maggie Lake 

Weekly: Business First AM  

 

ETF Summary  

(Pivotal means short-term bullish above that level and bearish below)  

S&P 500 (SPY) Watch 520-540 range  

Russell 2000 (IWM) 180 pivotal-193 resistance   

Dow (DIA) 400 pivotal  

Nasdaq (QQQ) 440 support 468 resistance 

Regional banks (KRE) 50 to clear  

Semiconductors (SMH) 205 is a place to clear 

Transportation (IYT) Must get back over 63-64 

Biotechnology (IBB) 115 support 120 resistance  

Retail (XRT) 64 key to hold. 69 resistance