Falling Wedge on the daily
Our AbbVie is trying to break out of the "Falling Wedge" pattern but is having a hard time.
Despite the pattern resistance being broken, momentum is weakening (MACD).
In addition, the volume is nearly average.
It is the opposite of what we want to see when we expect a breakout from a 222-day pattern.
It is probably due to bearish market sentiment.
Given the situation, I have marked the two possible scenarios on the graph.
1. Scenario: overall market turns bullish.
In this case, there is a chance for continuation with a target price of 151.72.
2. Scenario: market keeps dipping.
I expect a false outbreak. In this case, we could easily visit the 131.18 level.
Support: 141.88, 141, 137.55, 131.18
Resistance: 147.4, 150.78, 151.87
Despite the pattern resistance being broken, momentum is weakening (MACD).
In addition, the volume is nearly average.
It is the opposite of what we want to see when we expect a breakout from a 222-day pattern.
It is probably due to bearish market sentiment.
Given the situation, I have marked the two possible scenarios on the graph.
1. Scenario: overall market turns bullish.
In this case, there is a chance for continuation with a target price of 151.72.
2. Scenario: market keeps dipping.
I expect a false outbreak. In this case, we could easily visit the 131.18 level.
Support: 141.88, 141, 137.55, 131.18
Resistance: 147.4, 150.78, 151.87
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