AbbVie Chart Reflects Bearish Signals Ahead Of Q3 Earnings

AbbVie Inc ABBV will be reporting its third-quarter earnings on Wednesday. Wall Street expects $2.92 in EPS and $14.28 billion in revenues as the company reports before market hours.

Ahead of its third-quarter earnings report, AbbVie bolstered its Alzheimer's research efforts with the $1.4 billion acquisition of Aliada Therapeutics, announced on Monday.

Aliada brings an innovative approach to delivering treatments directly to the brain, with its lead drug candidate, ALIA-1758, showing promise for Alzheimer’s. This drug, still in early testing, targets amyloid beta plaques associated with the disease and could enhance AbbVie's portfolio in neuroscience.

With the acquisition, AbbVie aims to fast-track therapies for Alzheimer's and other neurological conditions. Investors seemed to approve, as AbbVie's shares closed 1% higher on the news.

The stock is up 33.68% over the past year, 18.68% YTD.

Let’s look at what the charts indicate for AbbVie stock and how the stock currently maps against Wall Street estimates.

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AbbVie Stock Technical Setup Ahead Of Q3 Earnings

AbbVie's technical indicators currently reflect a mixed but overall bearish trend.

Chart created using Benzinga Pro

The stock trades below its five, 20 and 50-day exponential moving averages, pointing to ongoing downward pressure.

However, with a share price of $189.57, just above its eight-day SMA of $188.60, AbbVie flashes a bullish signal in the short term. The 20-day and 50-day SMAs of $191.51 and $193.71 remain above the current price, reinforcing a bearish stance in the medium term.

Meanwhile, the stock's position above the 200-day SMA of $177.29 offers a longer-term bullish outlook. The MACD indicator at a negative 1.35 aligns with the short-term bearish trend, though the RSI at 45.07 suggests AbbVie stock is neutral. However, a decline of the RSI below 30 could signal a potential for a reversal.

Overall, while the technical outlook leans bearish, signs of buying pressure hint at a possible bullish turn ahead. 

AbbVie Analysts See Over 10% Upside

Ratings & Consensus Estimates: The consensus analyst rating on AbbVie stock stands at a Buy with a price target of $185.11. The latest analyst ratings from Citigroup, BofA Securities, and BMO Capital give AbbVie Inc. a $210 average price target, suggesting a 10.58% upside.

ABBV Price Action: AbbVie stock is down 0.12% to $189.45 at the time of publication Tuesday.

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