Technical analysis of Fakhuz / Desperate volatility of Khuzestan steel stock – Tejaratnews
According to Tejarat News, Khuzestan Steel Company is the largest supplier of slabs and billets, which was registered in 1366 and opened two years after that. The shares of this company were offered for the first time in the middle of August 1986 at the price of 335 Tomans in the Tehran Stock Exchange. It should be mentioned that the capital of the company at the time of initial offering was about 219 billion tomans, which after five stages of capital increase has reached 19 thousand billion tomans.
Fakhuz behaviorism
A look at the stock price chart of Khuzestan Steel Company shows that Fakhuz always enters the neutral channel after a sharp growth. For example, Fakhuz started an upward rally of 480 in mid-1998 until August 1999, and then formed a neutral channel. As it is clear in the chart, Fakhuz has been fluctuating in this overbox for about three years.
The same thing happened last year as well; Because Fakhuz returned to the same channel after the sharp growth he had last year and continued to fluctuate.
The important point of this chart is the middle line of Fakhoz’s neutral channel, which controls the movements of the share well and has been effective in all these three years. But what is the point of concern?
As it is clear in the chart, the share has broken this line downwards and at the same time as breaking the line of its upward trend in the last week. After that, with a pullback to the trend line, it continues its descent.
On the other hand, the drawing of an Andrews fork shows that the stock intends to double its previous correction. But this parallel below the middle line can stop the further decline of the stock to the bottom of the channel? To answer this question, one should examine the behavior of Fakhoz compared to the dollar!
Dollar and Fakhuz race
Comparing the movements of the Khuzestan Steel Company stock with the free dollar shows that the stock always follows the dollar with a delay. The chart below clearly shows that Fakhuz and the dollar crossed on September 19, 1401, and Fakhuz’s share started its upward trend with a delay of 32 days.
The same thing happened in the dollar limit and in the range of 58 thousand tomans. So, with the fall of the dollar, Fakhouz shares started to correct after 34 trading days and have decreased by 33% so far. Currently, the dollar has lost its channel of 49 thousand tomans and gives this signal, Fakhuz is bearish in the short term.
With these interpretations, it should be said that Khuzestan Steel stocks need a dollar signal to rise, and if the dollar grows, the price of Fakhuz will not be far from expected.
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