Technical analysis of Shajem shares in Shahrivar 1402 / Has the alarm sounded for Shajem shareholders?

According to Tejarat News, the Takht Jamshid Chemical Industries Company can be traded in the second over-the-counter market with the symbol “Shajem”. Shajem shares with a market value of 5,239 billion tomans are in the chemical products group.

The refining group as well as the chemical industry got a new life with the news of the formulation of the feed rate. The positive news of this area quickly spread to the whole market and as a result, the main indicator recorded a rotating ladder in its chart.

However, the next news, which is evaluated positively for the stock market as a whole, will negatively affect the downstream companies. For example, in the petrochemical industry, some downstream companies that compete on the price of their products in the commodity exchange, used to buy the raw material intercommunity. When the raw material is purchased intercommunity, because its demand is not of the so-called popular-workshop type, there is no competition on its price, but the competition was formed on the price of their final product.

For example, competition was formed on the price of polypropylene and Lobecut due to the existence of workshop or public demand. But at a higher level, the products of companies such as Nouri Petrochemical, Jam Petrochemical, Bo Ali Petrochemical and refineries are considered as feed for downstream companies. Therefore, in this situation, there is no competition on the price of the products of these companies.

The analysis of the trading board of “Shajem” shows that the behavior of the price of this share takes place with a short break in the direction of the suspicious movements of the share rights. Therefore, whenever the rights start to buy heavily, 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 chemical index

In the weekly dimensions, identifying the major structure in the chemical group index chart helps a lot to identify the trend. After the deep reform of this industry, which occurred simultaneously with the collapse of the market in 1999, a new trend started in the chemical group in the middle of March of the same year. The structures specified in the index chart of this industry indicate that the index of this group is bullish.

Also, the emerging structures show that the corrective waves of the mentioned trend are very similar to each other. So that this index ended during the recent correction of the market from the middle of May of this year as soon as it reached the size of the previous correction, and the indicator of the group of chemical symbols started to make higher ceilings and floors.

The pattern of the Andrews fork tool in the pullback style shows that this indicator measured the level of support of the buyers by testing and then re-testing the middle line, and after that it was thrown upwards. If the last floor is maintained in the range of 152 thousand units, the indicator of the group of chemical symbols has the target of reaching the ceiling of the Andrews fork.

Therefore, it can be claimed that the three previous reform waves are from the same family. On the other hand, the slope of the first wave of this upward trend is very similar to the last upward wave of the market, which began in November 1401. Therefore, this point can be used to draw the Andrews fork.

Based on this drawing, if the weekly candle of this indicator closes above the middle line, it has a great chance for the index to grow to a high parallel. This means that the index has crossed its previous ceiling.

Technical analysis of Shajam stock

The “Shajem” symbol experienced a drop of more than 40% after the fall that started in mid-May and was later determined to be due to the change in the petrochemical feed rate. This deep correction brought the share price of Shajem to the bottom of the blue ascending channel.

The collision of the price with the palm of the channel caused a 20% return of the price of this share. However, the resistance range of 823 to 839 tomans is the high supply range of the symbol of Shajam, and if the price passes with high volume and value of transactions, we can hope for the share to grow up to the station of 1,330 tomans and after that the ceiling of 1,190 tomans.

Disclaimer: All contents included in this site are research, scientific and news and are not recommended for direct activity in any market.

Read more market analysis reports on the Capital Markets page.