As AbbVie Inc. ABBV and Novartis AG NVS prepare to report their fourth-quarter earnings before market open on Friday, investors are eyeing the technical setups of both pharmaceutical giants.

While AbbVie is stuck in a stagnating trend, Novartis appears to have a stronger bullish momentum.

Let's break down the charts.

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AbbVie: Caught In Neutral Gear

AbbVie's technical setup presents mixed signals.

Chart created using Benzinga Pro

AbbVie stock is trading above its short-term moving averages, with the eight-day ($173.14) and 20-day ($175.20) SMAs (simple moving averages) flashing bullish indicators. However, longer-term trends tell a different story — AbbVie stock is aligned closely against its 50-day ($175.33) SMA and below its 200-day ($178.77) SMA, suggesting lingering downside pressure. The MACD (moving average convergence/divergence) indicator at a negative 0.89 reinforces this bearish bias, while the RSI (relative strength index) at 50.39 indicates neutral momentum.

Overall, AbbVie is struggling for direction, with slight selling pressure keeping a lid on any breakout potential. A strong earnings beat could push the stock past key resistance levels, but the current setup suggests AbbVie is vulnerable to further consolidation.

Novartis: Riding A Bullish Wave

Novartis, on the other hand, is trending decisively higher.

Novartis is trading above its short-term and mid-range moving averages, with the eight-day ($101.27), 20-day ($99.57), and 50-day ($100.44) SMAs all acting as support. The MACD at 0.68 points to bullish momentum, while the RSI at 63.61 shows strength without being overbought.

However, the stock remains below its 200-day SMA ($106.77), leaving some room for caution.

Investor Implications

Heading into earnings, Novartis holds the technical advantage, displaying a stronger bullish structure and upward momentum. AbbVie, meanwhile, remains stuck in a range, needing a catalyst to break higher.

Investors should watch key resistance levels — AbbVie above $177 and Novartis above $106 — for signs of further movement post-earnings.

Read Next:

• AbbVie Builds Momentum With Immunology Growth, Goldman Remains Positive

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