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Benzinga
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Stock Of The Day: AbbVie's Rally Looks Stretched — Could A Reversal Be Next?

1. ABBV has gained over 12% in the past week. 2. The stock is now considered overbought, signaling potential selling pressure. 3. Technical analysts have identified ABBV as the 'Stock of the Day'. 4. Reversion to the mean may result in a price pullback. 5. Changing RSI settings shows ABBV is very overbought, indicating a trend pause.

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FAQ

Why Bearish?

Being overbought typically leads to a price correction. Historical instances show that such trends often result in downward pressure as traders sell off their positions.

How important is it?

Trading patterns and momentum signals directly influence investor sentiment, thus impacting ABBV’s price. The high recent gains are significant for immediate trading strategies.

Why Short Term?

The immediate overbought condition indicates a potential sell-off. This type of momentum typically results in short-term volatility.

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