For speculators intrigued by discounts among blue-chip giants, healthcare juggernaut AbbVie (ABBV) is well worth consideration. Recently, ABBV stock triggered an unusual quantitative signal. In the past 10 weeks, only three of the weekly candlesticks were bullish (defined as the negative return between Monday’s open and Friday’s close).
Such signals are quite rare for ABBV stock, which features an upward bias. However, they also make for compelling opportunities for contrarians. Since January 2019, this quant pattern has only materialized less than 8% of the time on a rolling basis relative to all other 10-week sequences. However, more often than not, a recovery occurs over the course of the next 10 weeks.
