Buy ABB, first motive and corrective wave completed. Target 6255

ABB after the long correction had completed its first motive wave on 10th June as a much shorter wave with sub-wave 1 extension.

The stock has been undergoing correction in the form of a zigzag which a 5-3-5 wave structure, generally named ABC. Wave A did not have any internal wave extension. Wave C had a third wave extension. All the wave markings can be found in the chart.

The stock in all probability has completed correction of Wave B at little over 0.382 fibo extension of sub-wave 2-3 to 4 taking support at 50% fibo retracement of the entire wave. I was expecting a fibo extension of 0.5 or higher.

A new impulse wave is expected to take the stock much higher as this will be third primary wave (of larger degree) which is generally a very strong wave.

Buy with an initial target of 6255 with a stop loss of 5409.

PS: In the even if the stock continues correction, it will take support of any of the fibo extension levels and please be guided accordingly.

Happy trading !!