As I mentioned in my previous post “Abott Laboratories (ABT) could bounce off of next support” I bought 250 shares of ABT at $46.35 after it crossed Resistance on February 15, 2011. Today this stock closed at $48.70, which is above resistance line 3 of $48.62. If you look at its daily candlestick chart you will notice that this stock touched this price level two times before, first on December 20, 2010 and second time on January 5, 2011. On January 25, 2011 it came close to this resistance before it took a dive. Historically it has been proven time and again that a stock will continue its upward trend if it crosses the same resistance line after three tries, which is the case here. Which means that the upward trend will continue and there is a great possibility that it could hit a new 52 week high.
Just to be on the safe side I will be moving my sell stop to sell 250 shares to $48.39, which is just below the resistance of $48.62 which is our new support line.
If you have any question or advice please leave your comments below.
Update March 11, 2011: Sold all 250 shares of ABT at 48.39, total profit made (250 shares x 2.04) = 510.00
