Trade of the Day: Abbott Laboratories (ABT)

ABT looks headed for new highs

By John Jagerson and Wade Hansen, Editors, Strategic Trader

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After experiencing some profit-taking in the aftermath of the company’s most recent earnings announcement on Oct. 18, Abbott Laboratories (NYSE:ABT) has stabilized and completed a bullish “wedge” continuation pattern on Thursday by breaking above the down-trending resistance level that started in mid-October. We expect the stock to climb back up to its recent high of $56.68 and then continue on to set new highs.

Medical-device companies like ABT have done well this year, but some have been concerned the industry could struggle if Congress fails to extend the two-year moratorium on the medical-device excise tax it put in place at the end of 2015 with the Consolidated Appropriations Act. However, even though Congress is dealing with multiple legislative concerns, we fully expect it will extend the moratorium.

‘Buy to open’ the ABT December 55 Call (ABT171215C00055000) for a maximum price of $1.30.

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InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.

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