Analysis: sign of weakness in the ABB…

ABB stock has shown technical weakness by force support around 200kr in increasing turnover… which opens up for further decline against the 182kr in the first place. Any reconciliation from the bottom up by 200kr constitutes a short-term blankningsnivå.

ABB share price after a rejection of the lågpunkten around 143kr from 2014-15, have been traded in a strong rising trend that has taken the share price up through all time highs around 200sek from 2008. Share confirmed the positive outbreak in the middle of april by rejecting the 200 sek level on the upper side, which led to a new highest note.

In just two weeks, the positive börsbilden omkullkastats by a significant closure during the utbrottnivån. The technical weakness was confirmed last week by the continued fall in share prices.

In the short term, the stock is oversold, which increases the odds of a upprekyl against 200sek that has been converted to a strong resistance and constitutes a short-term blankningsmöjlighet against 182kr in the first place. In the long term, the shares have rejected buying interest above the 200 sek which is liable to take the shares down by lågpunkten at 136kr in order to ascertain what power is at the rear. This scenario is intact so long as the share is traded under 200sek. There are a number of support on the way there,… where each pass confirms the continuation of the decline towards the next level o.p.v. the closest is the support at 182, 162.50, 143 and 136kr.

Would share once again significantly close above the 200 sek, this is a positive development that opens up for a further test of the all-time-highs at the 223kr.

NCC B

Entrance sell
199-200 sek
Ticker
ABB

Målkurs
182kr
Market
The OMXS Large Cap

Emergency exit
205kr
P/E
21.7

Latest
190.30 £
Direct avk.
3.6%

The long trend in the form of the 40-week moving average is rising.

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More about technical analysis:

  • Common concepts in technical analysis
  • Moving averages – lagging indicator, which filters out the noise
  • MACD – technical indicator, which fits well into the trends
  • RSI – a classic momentumindikator that is a ”must” in swingtrading

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