Technical analysis of “Petair” Mehr 1402 / Is Iran Tire’s stock attractive? – Tejarat News
According to Tejarat News, it was announced yesterday that a 20% increase in the price of radial tires has been issued and manufacturers can apply this price increase to their products. For the same reason, Tejarat News reported in a report titled “Car tire depot in “Barz” warehouses/Radial tire price increase, will bring our Packer to the market?” reviewed the 6-month performance of Barez Industrial Group. Meanwhile, in a report entitled “Technical Analysis of Packerman Stocks Mehr 1402/Identification of the Important Barrier Against Packerman’s Flight”, the technical status of this company’s stock was examined. Based on this, the tire manufacturing company “Iran Tire” has been investigated today.
Iran Tire Company can be traded on the first market of the stock exchange under the symbol “Petair”. The shares of Iran Tire Company with a market value of 2,746 billion Tomans are in the rubber and plastic products group.
The analysis of the trading board of “Peter” shows that the price behavior of this share takes place with a short break in the direction of suspicious legal movements of the share. Therefore, every time the rights started to make heavy purchases, a little later, the share of floor swings made in its chart has given good returns to the shareholders. Therefore, in order to recognize the validity of the upward wave, it is very important to examine the legal behavior of the share.
Technical analysis of rubber and plastic index
The upward trend of the stock market started in November last year. The symbols of the rubber and plastic industry were not excluded from this trend. The upward trend continued until the middle of May and included two smaller corrective trends. However, in the technical analysis of the index chart of this industry, the size of the downward wave before the start of the downward trend is used. The reason for this is the similarity of the size of the chart correction from the middle of May until now to the size of the last downward wave before the beginning of the upward trend.
By drawing a Pullback Fork, you can guess potential reversal points. Drawing a parallel slide next to the centerline of the Pullback fork, however, shows that the tire index has broken this line down.
This significantly dims the bullish outlook for the rubber and plastic industry. Currently, this indicator is placed between two rectangular ranges. The neutral trend of this group’s index will continue until one of these two ranges is broken upwards or downwards. Therefore, it is necessary to carefully monitor the behavior of the price when the index is in the range of one of these boxes.
Technical analysis of Petair shares
Petair’s upward rally started from November 1401 at the same time as the stock market went up and brought a 259% profit to the company’s shareholders. The correction process of this share also started from the middle of May of this year and the price at one point was more than 46% away from the ceiling made in May.
The key support level of Petair symbol is formed at the price of 187 Tomans. This level represents the level of the 50% retracement Fibonacci drawn on the upswing of Pettyr, as well as the 6-month price ceiling at the beginning of last year. Therefore, if Pettyre’s correction continues, many traders are hunting for this stock at this key level.
But what points does the combination of trend, structure and tools in the technical analysis of Petair shares convey to the shareholders of this company? Determining the structure in the corrective trend of the Petyar symbol indicates that the price is in the fifth wave of this trend. Therefore, the breaking of the P0-4 line (which is drawn in red in the image) is considered a suitable trigger to enter this share.
On the other hand, the use of the Andrews fork, which is drawn in the style of a trend fork, indicates that the price has entered its corrective phase after touching the upper parallel of the middle line. Observing the behavior of the price with the fork lines tells about the acceptance of the frequency of this tool by the price.
At the moment, a possible scenario for the price is a lower parallel touch of the middle line (lower MLH) and then a break of the P0-4 line. Another scenario is the shortening of the fifth wave and the premature end of the corrective trend before registering a lower swing compared to the bottom at the beginning of September. The occurrence of the second scenario depends on maintaining the 38% Fibonacci level. However, the momentum of the price meeting the level of 38% has made it less likely to maintain this level.
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