ABBV: Health Action with Price Gains from a Tech Start-Up?! How It All Began :: Elliott Wave International

The path to AbbVie Inc.’s (ABBV) rally to record highs was no shortcut. So how long ago did it really start?

by Nico Isaac
Updated: March 24, 2022

In 2015, the UK Independent broke the internet with its story about a motorist in Washington, D.C. who tried to force his way into the carpool lane by sitting a life-size cardboard cutout of beer vendor Dos Equis in his passenger seat. !

This was perhaps the “most interesting” plan in the world to enter the fastest carpool lane; but alas, it wasn’t the most… astute. The man was quickly arrested by a police officer and fined.

Can you blame him? Our society is short of time and long to drive. Who among us doesn’t try to get to our next professional or personal destination faster, searching high and low for creative ways to cut corners or shave off a few minutes or steps to reach our goals?

But the hard truth is that there is no effective shortcut to learning how to trade in the financial markets.

In this area, cutting corners may backfire. Trading requires patience, discipline and, as Chief Market Analyst of Elliott Wave International and Trader’s class Editor Jeffrey Kennedy says it, self-control for “Arrive to the party very late and leave well before the cops shut it down.”

Jeffrey lives by one rule: find a trend you recognize on a market’s price chart. Then wait, wait, wait for the price action to confirm your wave count before entering the market.

Take, for example, the performance of healthcare giant and Big Board member AbbVie Inc. (ABBV). In March, ABBV shares appeared to have “inhaled” one of its parent company’s medical marijuana drugs after hitting an all-time high on March 22.

The surge in stocks has earned praise from Wall Street, as these recent articles show:

March 2 Simply Wall Street“For growth-oriented investors, AbbVie’s gross earnings growth rate is a lighthouse in the night.”

March 14 Finding Alpha: “AbbVie: More of a One Trick Pony…I believe AbbVie presents a great investment opportunity for the long-term dividend investor”

March 17 Motley Crazy:

“With a current yield of nearly 4%, the stock’s all-time highs are icing on the cake, and defensive-minded investors are beginning to see the value of the pharmaceutical industry company’s business model as a way to reduce overall portfolio volatility. »

Can you feel the rush? The little voice inside your head telling you, “Jump on that ‘great investment opportunity’, that bullish ‘beacon in the night’ before it’s too late.

Well, you could listen to that voice and hop on ABBV now — AFTER its value doubled to record highs.

Or – you could have listened to a very different voice, the one that saw ABBV’s “flagship” begin to shine in November 2020. On November 3, 2020, our Trader’s class presented this tagged price chart from ABBV.

Thereupon, Jeffrey Kennedy recognized one of the most bullish Elliott wave patterns: a 1-2, 1-2 wave formation and painted this very favorable long-term picture:

“What catches my eye here is the high, low, high sequencing we’ve seen since the 2019 low and because I tend to see the glass half full, let’s go with that number of waves : 1, 2, 1, 2. means we will continue much, much higher here.

“Another thing that I like here at AbbVie is what we saw in October, a bullish reversal from the island. So there are a few things that support the long side of AbbVie.

“In this very confident trading setup, the risk is very limited, the upside potential is hugeand the risk-reward ratio is really nice.”

11320TCABBV

From there, ABBV rallied $20 per share before falling sideways. On April 29, 2021, Trader’s class reviewed the stock. There, Jeffrey outlined a way forward that would require essential skill from traders; namely patience. In the words of Jeff:

“We are in wave 3 of 5, which will be followed by a sideways correction in wave 4, and then we will continue to see a new rally as we climb this issue.”

42921ABBV

And this next chart from ABBV shows how exactly that happened. Prices went up a notch for months before hitting record highs on March 22.

32222ABBVgraphic

The main takeaway: there was no clever shortcut to get to ABBV’s “great investment opportunity” other than patiently watching the waves of investor psychology.

It’s true that you can’t rush success, it’s also true that not all Elliott Wave Predictions work like this. But as Jeffrey’s number one rule points out, you should always wait for price action to confirm your wave count.

If so, Elliott Wave Analysis provides you with critical price levels to help you minimize risk every step of the way.

Find out which stock symbols offer the best Elliott Wave lessons inside Jeffrey’s Trader’s class today!

Be where the opportunity is next

Apple, Trip.com, Boston Beer Company and Bitcoin — what do they all have in common?

Answer: They are all presented in the current catalog Trader’s class videos. In each of these carefully crafted lessons on Elliott Waves and other technical indicators, editor Jeffrey Kennedy walks you through every step of a high-confidence setup, from wave counts to confirming market action. prices and critical levels needed to stay on the safe side of risk.

Watch new lessons now – see below for more.