Dharmesh Shah ICICI Direct.com
The share price of ABB has been oscillating in an upward sloping channel over past two years (drawn adjoining lows of January - December
2016 of Rs 955 -1018, respectively). Recently prices retraced 80 percent of last leg of up move (Rs 1129-1517), placed at Rs 1206 levels
coinciding with lower band of rising channel. As a result, stock formed a higher low, signifying conclusion of ongoing corrective phase.
Going ahead we expect the stock would hold the key value area of Rs 1200 and resolve higher, as it is:
Long term 200 weeks EMA is placed at Rs 1232
Lower band of upward sloping channel is placed around Rs 1160
Among momentum oscillators, the weekly stochastic oscillator has been inching upward after recently recording bullish crossover, indicating
acceleration of positive momentum in the short term.
In a nutshell, we believe the stock has formed a strong base around Rs 1200 zone that augurs well for stock to resolve higher and head towards Rs 1550 in the medium term as it is the price parity of the August-September 2018 up move (Rs 1150 to Rs 1517) added to the October 2018 low of Rs 1190 project up side towards Rs 1550 levels.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
