ABT a slow moving low beta medical stock
ABT is Abbott Labs, a well-established medical technology company has had good earnings
twice this year. In the first episode, the price trended down then recovered in a retracement.
I have anchored a long-term mean VWAP and its standard deviations as a means to assess
areas of dynamic support and resistance. One week ago, the price crossed the mean VWAP in
its uptrend. I see this as a good place for a long trade over a month or more. For a stop loss
I will place the stop below the mean VWAP also confluent with two horizontal support lines
as well as the rising support trendline and the POC line of the volume profile
Targets are the first and second standard deviations at about $105 and $110. I will make an
optimal entry from a pivot low on a timeframe of 30-90 minutes.
As the anticipated ROI is relatively small although with reasonable risk, my approach is
a call option for mid-September with a strike in the range of $100-104. I expect this to
yield 25% or more monthly until signs of a pullback or reversal. While the general market
has heightened volatility and controlled chaos, I see adding some trades of slow-moving
low beta stocks to be proper risk management.
twice this year. In the first episode, the price trended down then recovered in a retracement.
I have anchored a long-term mean VWAP and its standard deviations as a means to assess
areas of dynamic support and resistance. One week ago, the price crossed the mean VWAP in
its uptrend. I see this as a good place for a long trade over a month or more. For a stop loss
I will place the stop below the mean VWAP also confluent with two horizontal support lines
as well as the rising support trendline and the POC line of the volume profile
Targets are the first and second standard deviations at about $105 and $110. I will make an
optimal entry from a pivot low on a timeframe of 30-90 minutes.
As the anticipated ROI is relatively small although with reasonable risk, my approach is
a call option for mid-September with a strike in the range of $100-104. I expect this to
yield 25% or more monthly until signs of a pullback or reversal. While the general market
has heightened volatility and controlled chaos, I see adding some trades of slow-moving
low beta stocks to be proper risk management.
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