We covered ABB last week however for those interested in technical analysis and the psychology around it, this is a textbook breakout. One of the highest probability patters in the market is a breakout of consolidation in a strong uptrend. ABB fit the pattern perfectly last week and as the stock traded out of its range, the technical buyers came in and the share price rallied 10% in short order. We are keen buyers of this stock however chasing a breakout in MM’s view often fails, and we’ve seen this classic pattern play out perfectly. The next piece of this puzzle is for stop losses to be triggered, the stock to gap lower as a result and that’s where we aim to buy it. Our best guess is stops would be just below $5.00, making us keen buyers around $4.80
MM is bullish ABB looking for optimum entry
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