Defensive sectors and the stocks therein have seen aggressive action over the past few trading days. Consumer staples (XLP), utilities (XLU), and healthcare (XLV) sectors showed exceptional strength, while real estate (XLRE) stocks indicated an interest in inflation protection.
Healthcare providers, pharmaceuticals and biotechnology sectors produced winners like UNH, MRNA, ABBV, JNJ, PFE, CERN, and BMY to start the week.
AbbVie Daily Chart
AbbVie (ABBV) cleared several benchmarks on Monday, after RS line jumped from 77 to 86 in two trading days.
AbbVie is alittle extended now, so consider taking partial profits as the stocks is elevated above a 117.82 buy point in a first-stage cup with handle. We’ll monitor the stock for a follow-on buying opportunity like a three-weeks tight or pullback to the 10-week line. Day trades will be considered today with the stock flat pre-market.
Bristol Myers Daily Chart
Bristol Myers Squibb (BMY) announced a $0.54 quarterly dividend, a 10.2% increase, payable Feb. 1; for shareholders of record, ex-div Jan. 6.
The stock popped above the 50d moving average on the news.
RSI and MACD are trending higher, indicating bulls are in control. If all goes well, we anticipate Bristil Myers (BMY) could see 52 week highs by early 2022.
Below are some additional stocks worth considering for day trades. All of them showed exceptional stremgth on Monday, with most candidates printing an 80 or higher Relative Strength Rating.
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