Technical analysis of the auto industry index / the end of the upward rally of the country’s automobile giant? – Tejarat News
According to Tejarat News, the “car” symbol, which is the main representative of automobiles, managed to get a 101% return for its shareholders after the beginning of the upward phase of the stock market in November of last year. In the future, however, with the events of the withdrawal of high-volume cars from the stock market, the symbols of this industry were involved in the correction process.
Iran Khodro Company was registered in 1341 with the original name of Iran National Industrial Industries. This company started working in October 1342 with the aim of producing all kinds of cars and related parts, and its shares were listed in the Tehran Stock Exchange in late 1371 with the symbol “Khodro”.
Currently, the main activity of Iran Khodro is the production of body parts, engines, production and assembly of passenger cars and vans. The shares of this company are currently traded in the second market of the stock exchange and in the automobile and parts manufacturing group. Iran Khodro is the largest company of this group with a market value of about 55 thousand 323 billion tomans.
Technical status of the automobile industry
A brief comparison between the automobile industry index and the stock price chart of Iran Khodro Company shows a very high functional similarity between the two. Since the beginning of 1402 and in three trading weeks, the yield of the auto industry index has been slightly more than 18%.
With the recent growth of the automobile group index after breaking the ceiling in December of last year, it is now at the threshold of an important resistance. The range of 1,435,000 to 1,485,000 units is obtained by matching the 61.8% Fibonacci level of the regression drawn on the two recent kinetic and corrective waves and the static resistance of the December 2019 ceiling.
The automotive industry index has crossed its upward channel and has also completed its pullback to the ceiling of this channel in the correction of January and February of last year. In such a situation, by drawing a future double target channel, the share will be obtained, which the car index is currently on the verge of reaching.
If the auto industry index crosses this range, there will be only one more resistance (in the range of 1,770,000 units) before the index reaches its historical ceiling. It is clear that in such a situation that the total index has crossed its historical ceiling, the desire of automobile shareholders is for this index to reach its historical ceiling range.
Technical analysis of the car
During the growth of the “Car” symbol in the first three weeks of the new year, it was able to completely cross its previous ceiling. Currently, however, as mentioned in the analysis of the automobile group index, the price of “car” is on the verge of reaching its resistance.
The range of 425 to 430 Tomans is considered a reliable resistance for the share in two ways; The presence of 61.8% Fibonacci regression balance and also the important ceiling of December 2019.
If the power of demand is able to overcome this resistance, we can expect the stock price of Iran Khodro to move towards its 1999 ceiling in the rest of the year. Although some experts describe the prices of 1999 as increasing, especially in the automobile industry, with the giant inflation in the country, these prices do not seem to be a bubble for automakers with today’s dollar situation.
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