PSXStock

Eliottwave Analysis & Forecast – Fatima Fertilizer – PSX:FATIMA – W1 – 20210114

The Fatima Fertilizer Company Limited was incorporated on December 24, 2003, as a joint venture between two major business groups in Pakistan namely, Fatima Group and Arif Habib Group.

It produce fertilizer such as Ammonia, Nitric Acid, Urea, Calcium Ammonium Nitrate (CAN), Nitro Phosphate (NP) and Nitrogen Phosphorous Potassium (NPK) in Punjab.

If we look at the weekly chart, it place its all time high (51.25) on Aug, 2015 completing its five wave structure (gray i-v) and finish long term green wave I. After that we saw long term correction in gray WXY formation and this correction had ended on March, 2020 @ 19.26. Here it also completed Long Term Green wave II.

At the current moment, price are going in Green Wave III and it is matter of time that this green wave III will surpass beyond the previous high (51.25) and even much higher. Red wave 1 of gray wave i of Green wave III has completed and placed short term top at 32.19 and I think red wave ii is formed and placed bottom at 26.80 near 38% of Fibonacci retracement. If our this bias is true then we will soon see a rally in red wave 3 but this correction can go down to 61%  or even 100%.

However, considering Elliott wave rules, wave 2 can retrace down to 100% of wave 1 but cannot below that.

 

9MCY(20) report shows increase in finance cost wiping 18% of Profit and slightly increase in EPS as compared to 9MCY(19). EPS has good and steady growth since last 10 years.

 

muhiuddin

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