ABB India shows Bullish momentum; Check the chart and details

Synopsis: ABB India Ltd has exhibited a bullish reversal pattern on its 30 min chart, signalling potential near-term upward momentum. 

ABB India Ltd, after experiencing a prolonged downtrend in recent trading sessions, has formed a double bottom pattern in the 30 min time frame, signalling a potential bullish reversal. 

The double bottom is a classic bullish reversal pattern, characterised by two troughs formed at roughly the same price level, separated by a moderate rebound. This formation indicates that selling pressure is diminishing and signals a potential shift from a downtrend to an uptrend once the price breaks above the resistance level (the neckline).

On Thursday, the stock broke above the Rs 4,750 resistance neckline after forming a double bottom pattern. This breakout, supported by sustained buying volumes, confirms near-term bullish momentum.

The upside target for this pattern is typically measured by identifying the nearest resistance levels and projecting them as potential objectives. As the price approaches these levels, traders often look to book profits or reassess their positions.

(30-minute Timeframe)

Indicator Confirmation

• RSI: The daily RSI indicates bullish momentum, as it rose from 29 in the previous trading session to 32.7 on Thursday, confirming the continuation of the reversal.
• MACD: The orange signal line crossed below the blue MACD line, with the histogram turning green, indicating bullish momentum.
• Moving Averages: On the 30-minute time frame, the 5-day moving average has crossed above the 9-day moving average, further confirming a bullish trend.
• Price Volume Trend: The Price Volume Indicator confirms the trend, supported by a sharp increase in buying volume.

Implications

This bullish double-bottom breakout suggests the potential for further upside momentum. A decisive close above the neckline resistance, ideally supported by higher volumes, is needed to confirm the move and minimise the risk of a false breakout. On the downside, support is likely around Rs 4,750, while sustained trading above the breakout zone would signal continued bullish strength.

About the stock

ABB India is a leading global technology and automation company with a presence in India spanning over seven decades. The company operates manufacturing facilities in Bengaluru, Faridabad (Haryana), Nashik (Maharashtra), and Vadodara (Gujarat). ABB India conducts its business across four key segments: Electrification, Motion, Process Automation, and Robotics & Discrete Automation.

Over the past month, ABB India Ltd recorded a return of -7.90%. The stock declined by 17.09% over the last six months and has delivered a return of -24.02% over the past year. For more such technical stock ideas, Click here to view our research page.

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