Saturday, April 6, 2019

ABB India Ltd. – Multiple Chart Pattern Breakout Confirmation

Earlier we have seen a perfect example of Forming Descending Triangle. Now we are trying to explain multiple chart pattern confirmation within the single stock chart.

ABB India Ltd. (NS: ABB) is a Swiss-Swedish multinational corporation headquartered in Zurich, Switzerland. ABB is operating mainly in robotics, power, heavy electrical equipment and automation technology areas. ABB is traded on the NSE/BSE Exchange in India, SIX Swiss Exchange in Zürich, Nasdaq Stockholm and the New York Stock Exchange in the United States.

Technical Overview of ABB: Below picture is a chart of the daily time frame. We can see on last Friday (on 5th April 2019) stock price has suddenly gained by 3.81% and has given a breakout confirmation of 4 chart patterns (Cup & Handle, Flag, Bullish Engulf and Trend Line). On 11th January 2019, the stock price has started to fall and on 22nd March 2019, it has completed “Cup as well as Poll of Flag” formation. In the next 9 trading days, the stock price has been confirmed it’s “Handle as well as Flag”. On Friday, 5th April 2019 stock price has been closed around 1377 (almost spike of 4% in a day) and it is a breakout of Cup & Handle, Flag and 1st Trend Line. Also, it gives the confirmation of a Bullish Engulfing pattern. I am very bullish on this study.

My view on this study is that stock price has not given 1 or 2 pattern confirmation. There are 4 pattern confirmations at the same time and it’s a big confirmation in my point of view. Riskers can buy at current levels or buy on dips till 1360 to 1350 i.e. near support for the target of 1400, 1450++. Keeping stop-loss of 1300 on closing basis is advisable.

Contact: 9975285231

Disclaimer: The contents produced here are purely for educational purpose. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.

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