Investors Set Sights on Earnings as AbbVie and Novartis Gear Up for Q4 Reports

Market Moves: A Look at AbbVie and Novartis Technicals

As AbbVie Inc. ABBV and Novartis AG NVS prepare to announce their fourth-quarter earnings before the market opens on Friday, investors are carefully analyzing the technical setups of both pharmaceutical companies.

AbbVie’s stock appears to be in a stagnant trend, while Novartis shows signs of stronger bullish momentum.

Here’s an analysis of each company’s chart.

AbbVie: Mixed Signals and Stagnation

Chart created using Benzinga Pro

Currently, AbbVie stock is trading slightly above its short-term moving averages. The eight-day ($173.14) and 20-day ($175.20) SMAs (simple moving averages) show bullish indicators, yet longer-term trends reflect a different narrative. The stock is closely aligned with its 50-day ($175.33) SMA and is below its 200-day ($178.77) SMA, hinting at ongoing downside pressure. With a MACD (moving average convergence/divergence) reading at negative 0.89 and an RSI (relative strength index) of 50.39, the stock shows a neutral momentum trend.

Ultimately, AbbVie struggles for direction amid mild selling pressure, limiting breakout potential. An earnings beat could drive the stock past crucial resistance levels. However, existing indicators suggest AbbVie might face further consolidation.

Novartis: Strong Momentum Ahead

In contrast to AbbVie, Novartis is trading significantly above its short-term and mid-range moving averages. The eight-day ($101.27), 20-day ($99.57), and 50-day ($100.44) SMAs serve as solid support levels. With a MACD of 0.68, the stock indicates positive momentum, and the RSI stands at 63.61, illustrating strength without reaching overbought territory.

Nevertheless, caution is warranted as the stock remains below its 200-day SMA ($106.77), suggesting that while momentum is strong, there is still potential volatility.

Looking ahead to the earnings reports, Novartis possesses a technical advantage with a robust upward trend. Conversely, AbbVie finds itself in a constrained range, looking for a catalyst to spur upward movement.

Key resistance levels to monitor post-earnings include AbbVie above $177 and Novartis above $106, which could signal further price dynamics.

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