Technical Bits: ABB forms opening bullish Marubozu candle

The stock of ABB India Limited has given breakout of a horizontal trendline resistance on Monday along with strong volumes. Additionally, the stock had formed opening bullish Marubozu candle on breakout day, which adds strength to the breakout. The opening bullish Marubozu candle has no shadow extending from the open price end of the body. Opening bullish Marubozu candle indicates extreme bullishness.

The major trend of the stock is bullish as it is trading above its weekly pivot and above its long-short term moving averages, i.e. 20-day, 50-day, 100-day and 200-day EMAs and these moving averages are exactly in an ascending order, which suggests that the trend is strong. Among the momentum indicators, the weekly and daily MACD stays bullish as it is trading above its zero line. The stock's Relative Strength Index (RSI) is currently quoting at 74.90 and it is in a bullish zone. Moreover, the stock is trading above Ichimoku cloud and Upper Bollinger band indicates further upward momentum.

Going ahead, the stock has immediate support in the zone of Rs. 1,458-1,444 as the 13-day EMA and 20-day EMA is placed in that region. While the 50-day EMA is likely to act as major support, which is currently placed at Rs. 1,402. On the higher side, any sustainable move above the level of Rs. 1,620 is likely to open up gates for further rally towards the levels of Rs. 1,700, followed by Rs. 1750.

On Monday, the stock of ABB India closed at Rs. 1,610.70 per share, up by 7.76 per cent. The stock opened at Rs. 1,485 per share and hit an intraday high of Rs. 1,620 and a low of Rs. 1,485 per share on BSE.