ABB has been extremely volatile stock in last 3 years. The stock rose to 1525 from 430 in the 2014 rally & then corrected nearly 40% from the highs to 950 levels. Thus completing 50% retracement of the previous rally.
However ABB made a 52 week low of 952 on Jan 22, well before nifty made its 52 week low on budget day indicating that the stock is outperforming the index & it looks like this outperformance will continue further. There are multiple resistances in the zone of 1225 to 1300. Once the stock crosses & closes above 1300, its likely to make a new high in next 12 months.
In the short term, the stock is trading above its 21 day HMA & making higher tops & higher bottoms. Momentum indicators also supporting the view. So long positions can be initiated in the stock @ current levels for target of 1225 with a stop of 1115.
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