ABB is another trade that is currently active in my portfolio. Here is my analysis for it.
1. ABB is quite a bullish stock when viewed on long term time frame. (Note: although our trade is quite short term, but the strong bullish nature on longer term always gives the stock a nice wind).
2. The stock was in range since July last year. It started breaking this range early December, with breakout on multiple swing points.
View attachment 50175
3. It gave a nice opportunity for entry in early December when price was near important support point.
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>> I took a position near the 4700 area. Anticipating a run till 5600 area as per Fib projections. Earlier I had a stop below the weekly range, but since then it has already done a retest to its range and regenerated post that. I am hoping that this shouldn't penetrate the 4600 zone if everything goes right.
1. ABB is quite a bullish stock when viewed on long term time frame. (Note: although our trade is quite short term, but the strong bullish nature on longer term always gives the stock a nice wind).
2. The stock was in range since July last year. It started breaking this range early December, with breakout on multiple swing points.
View attachment 50175
3. It gave a nice opportunity for entry in early December when price was near important support point.
View attachment 50176
>> I took a position near the 4700 area. Anticipating a run till 5600 area as per Fib projections. Earlier I had a stop below the weekly range, but since then it has already done a retest to its range and regenerated post that. I am hoping that this shouldn't penetrate the 4600 zone if everything goes right.
Today this had a big drawdown. The price went and broke the important support level near 4591 (which I discussed in my earlier post). The problem was not the breakout, but the way it broke-out - with huge volume and tracing it even deeper. This indicates that this is not just a normal retrace. The sellers are in control as of now, at least on the short-term timeframe. Chances are the price can go deeper before it decides to make any next move.
I have closed this position @ 4497.95. Will wait here for now and see if I get a better entry here.