Abbott Laboratories

For today's chart we've chosen to take a look at Abbott Laboratories (NYSE:ABT) because it is trading near an interesting level of support. As you can see from the chart below, the $50 level has been able to prop up the price several times over the past year and many are now wondering if this will be the case again. We've added the Relative Strength Index to the bottom of the chart because it is currently near 25, which suggests that the stock is oversold and that buyers may be looking for a strategic entry level.

We'll keep a short-term bullish outlook on this stock because it may be a good candidate for a bounce higher. We will change our perspective in the event that the bears are able to send the price below the trendline. Many bullish traders will set their stop-loss orders below the nearby support because it offers an interesting risk/reward ratio.