AbbVie (ABBV) stabilises after a sharp decline; Submits new application to FDA

AbbVie (ABBV) stabilises after a sharp decline; Submits new application to FDA
9 months ago
3 mins read

On September 20, 2021, AbbVie (NYSE: ABBV) submitted a new application to the U.S. Food and Drug Administration (FDA) seeking approval for risankizumab-rzaa, an interleukin-23 (IL-23) inhibitor, for the treatment of patients 16 years and older with moderate to severe Crohn’s disease.

Recently, the FDA placed restrictions on JAK inhibitors on September 1, 2021, which harmed AbbVie’s chances for the autoimmune illness medication Rinvoq; as a result, AbbVie shares fell more than 10% following the FDA’s decision.

Since then, the firm has stabilized since its sharp decline and is currently trading in the middle of its 52-week range while the S&P 500 Index, however, is trading in the upper part of its 52-week range, so ABBV is trailing the market slightly.

ABBV 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

AbbVie uses cutting-edge research, industry knowledge, and a deep commitment to improving people’s lives to find solutions to complex medical problems and over the last month ABBV has been trading in the $106.03 – $121.53 range, which is quite broad and it is currently trading near the lows of this range.

Prices consolidating

Presently the candles are suggesting the bears tried to improve the selling pressure, but the buyers took over the daily candle presenting a solid setup opportunity. Since prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at $106.68; a stop order could be placed below this zone.

Support at $105.65 from a horizontal line in the daily time frame can be found, while support for a horizontal line in the daily time frame at $102.80 represents support. On the other hand, a resistance zone ranging from $106.48 to $108.25 is formed by a combination of multiple trend lines and important moving averages in multiple time frames.

The view on Wall Street

Wall Street analysts think that ABBV stock will rise to $128 in the next year, a gain of 20.46% from its current price of $106.26, with a high prognosis of $142 and a low projection of – $112.

ABBV analyst price target. Source: TipRanks.com

Furthermore, based on the price forecasts of twelve TipRanks experts’ stock recommendations for ABBV over the previous three months, ten analysts suggest ‘Buy,’ two recommend ‘Hold,’ and none recommend ‘Sell.’ 

The average rating for ABBV stock is a ‘strong buy,’ with a 20.46% upside, making it an appealing buy for both traders and investors, as even their lowest price estimate of $112 is higher than ABBV current price of $106.26.

Generally, the recent FDA line was harsher than some expected, and on the whole, investors were not anticipating it. However, it is worth noting that AbbVie does have another autoimmune disease medication, Skyrizi, that it depended on, along with Rinvoq, to be the Humira successors. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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Jordan Major

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.