NSE ABB Preparing for a Sharp Decline Ahead

Timeframe: 4h
On the daily 4-hour chart of NSE ABB, a corrective pattern has taken shape. The stock has formed an A-B-C structure where wave (A) appears as a zigzag, wave (B) as a double three formation, and wave (C) is still in development. Currently, the price is trading above 200/100/50 EMA. The key question is whether the move has already occurred or is still pending.

Wave (Y) has reached 100% retracement of wave (W), so wave (W) = wave (Y) at 8563. Wave ((B)) has retraced 78.6%, indicating that we can anticipate wave ((C)) to extend to 100-127%, as the overall formation is expected to be flat. There are more than three clusters suggesting that wave ((B)) could potentially complete around the 8843 level.

For wave ((C)), We can anticipate a maximum extension of 100% of wave ((A)) at the 6609 level. Bullish sentiment will emerge if the price holds above wave B, but this seems less likely due to the choppy nature of the current formation. After completion of wave ((B)), traders can expect the following targets: 7854 – 7359 – 6841.

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