abb Share price: Chart check: After 10% decline, this MNC stock seems set to hit
ABB Ltd, with a market capitalization of over Rs 47,000 crore, reached a 52-week high of Rs 2,469 on January 25, 2022, but the trend quickly reversed. It closed at Rs 2,230 on May 10, 2022, down about 10 per cent.
The stock created a bullish three strike line pattern with strong volume last week suggesting a reversal. The stock is trading above 50-DMA which will serve as important support for the stock in the long run.
Investors can now enter the stock for a target of Rs 2,850 and a stop loss of Rs 2,000, experts suggest. The duration is around 3-5 weeks, they say. A global leader in power automation technology that enables utility and industrial customers to improve their performance by reducing environmental impact. The company’s product range includes power products, automation products, process automation and robotics.
The stock is trading well above the important short and long term moving average which is a positive sign for bulls.
“Last week, the stock formed a bullish three strike line pattern and rose to a 2 ½ month high on the weekly chart. The bullish three-line strike pattern creates three red candles in a downtrend, “said Jatin Gohil, Technical and Derivatives Research Analyst.
“Each bar posts a low low and closes near the intra bar low. The fourth bar opens further down but reverses the wide range outside the bar which closes above the top of the first candle in the series, ”he said.
The above-average volume indicates that major market participants were in favor of bulls. The stock has the potential to explore unknown areas.
“This could lead the stock to its previous high-connecting Rising Trendline, which has been kept at around Rs 2,850 and a stop loss of Rs 2,000. Since mid-November ’20, the stock has been above its 50-week EMA. In the event of a fall, the stock will respect its original moving average, ”Gohil explained.
(Disclaimer: The recommendations, suggestions, opinions and opinions offered by the experts are their own. These do not represent the views of the Economic Times)
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