Technical analysis of “Shiraz” stock in October 1402 / Doubts of shareholders in the upward trend?
According to Tejarat News, Shiraz Petrochemical Company can be traded in the first market of the stock exchange with the symbol “Shiraz”. Shiraz shares with a market value of 38 thousand 525 billion tomans are in the group of chemical products.
The analysis of the trading board of “Shiraz” 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’s 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 index of the chemical group started building 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 Shiraz stocks
If you are asked to describe the price behavior in Shiraz Petrochemical Company’s stock value chart with one word, the best word for this purpose is likely to be “lawful”. The channelized behavior of the price and its adherence to the road map that the technical analysis of the share shows to the market people show this issue.
For example, to find the end point of the previous correction wave that occurred in the period of late October to early March of 1400, it was enough to extend the bottom of the previous compression triangle and get its intersection with the middle line of the pullback drawn. The mentioned intersection shows the price level of 1,404 Tomans and the ending point of the downward trend of this share was 4% lower than that.
In the frame below from the “Shiraz” price chart, three corrective waves can be seen, all three of which have the same size. This point tries to convey that all three reform waves are from the same family. On the other hand, the stock price of Shiraz has reached the level of 61.8% Fibonacci correction drawn on the previous upward wave during the correction of the whole market from mid-May to early September. The range of 1,954 Tomans is close to the static support level (ceiling of 1999) of 1,928 Tomans.
Therefore, it can be seen that there are sufficient reasons for the end of the stock correction wave. This reinforces the bullish scenario. In this scenario, experts say, the last upward wave of the “Shiraz” symbol is not a break in the downward trend, but the beginning of a new upward trend.
However, the symbol of Shiraz is currently in the phase of falling and sometimes even correcting the price just like the stock market as a whole. In a closer look and analysis of the price movement since September, the level of two thousand and 147 tomans is vital to maintain the credibility of the proposed scenario. If this level is broken down, the scenario ahead of the share will change.
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.