- ABDX stock has had a great year in terms of returns generating over 80% returns in the past 1 year.
- After a great bull run till June, the stock has since then entered a strict range bound movement which is yet intact.
- The current setup looks neutral and thus the upcoming weeks will be crucial in deciding the stock’s future.
Abingdon Health is a British manufacturer of lateral flow assay diagnostic tests, sometimes called rapid tests, lateral flow immunoassays, lateral flow tests quick tests. Since its formation in 2008, Abingdon Health has developed and manufactured lateral flow rapid tests across multiple industries.
Financials for the company look slightly weak as the numbers are relatively small and the company has not been profitable since 2019 which makes it problematic for the stock and its investors.
Technical analysis for the stock
The stock generated a massive 60% plus returns alone in 2023 for its investors when it touched its 52-week high at 18.5 pence in mid-June. Post that, volumes dropped and volatility reduced in the stock leading to a constant sideways range bound movement which is yet intact.
One can look at this as profit booking after a good rally which is usually expected when a stock delivers huge returns like this.
14.10 pence is an important resistance as the stock has faced rejection from that level at various times. The last trading session saw a gap up opening very close to this level which was then followed by a constant and sharp selling indicating the strength of the supply zone there.
Talking about the current setup, sellers have entered in a huge quantity but till the time the stock traded above 10 pence, one should not worry much. If we do see a breakdown from 10 pence, we have a big target till 8.7 pence which is comparatively a big downside.
If the stock does breach 14.1 pence in the upcoming days, 15.4 pence stands as the first target and resistance for the stock.
On an hourly scale, we see severely low volumes in the stock since the past month. This is a major reason for the constant consolidation and sideways movement the stock has been facing since a long time.
In a scenario like this one, major movements are less likely to happen as neither buyers nor sellers are currently interested in the stock.
The current levels to watch out for are 10 pence on the downside and 12 pence on the upside. A stronger movement can be expected if the stock breaches these levels on their respective sides.
Conclusion
The stock is currently facing a volume and liquidity crunch due to which it is moving highly sideways. One should wait for the stock to breach strong levels so higher volumes can be seen before making any move. The overall setup looks neutral and thus the upcoming weeks will be crucial in deciding the stock’s fate.
Important technical levels
Major support levels: 10 pence followed by 8.5 pence.
Major resistance levels: 12 pence followed by 14.1 pence.
Disclaimer
The views stated by the author or any person named in this article are purely for educational purposes and do not establish financial or investment advice. Investing or trading in instruments like stocks and crypto involves financial risk and should not be done without doing proper research and analysis.
