Abbott Labs wishes upon a StarLIMS

Why would ABT acquire LIMS? Well, as a provider of laboratory information management systems, StarLIMS could help strengthens Abbott's competitive position in the global diagnostics market, providing advanced web-based applications to help laboratories efficiently store, retrieve and analyze a significantly increasing volume of clinical, managerial and administrative data.
The technology can help throughout all the stages through to compliance with regulations and industry standards. Such technology could help ABT take drugs from the drawing board to the pill bottle faster.

Understandably, LIMS rallied in pre-market trading. What about ABT? The stock set a 2009 nadir at the beginning of May, rallying from the $42 region to its current place in the $54 region. The stock is battling resistance in the $54 region, but it appears to have some help from its 10- and 20-day trendlines.

In addition, ABT's 10-week moving average is ascending through the $52 region with its sites set on the $54 region. If this trendline gives the stock a push, we could see it advance. The problem is, it appears that ABT will struggle with the $57 level. This region has stopped the stock cold on several rally attempts, and it could take some major momentum to push the shares further.