Fluorochem has been under sharp correction ever since its q2 fy 23 results. Results have been quite decent and post results research reports all indicated higher prices. But once all the good news is out, and most investors and analysts start getting bullish, stock prices have a way of confounding everyone.
From a high of 4174 in Oct 2022, stock price has corrected to a low of 3176 today, and managed to close above 3200. Now there are certain interesting observations to make on the chart and the importance of the levels of 3170 and thereabouts.
Firstly, the above level is at 50% retracement to the entire previous rally from 2112 to 4174.
Secondly the above level is close to the previous major peak of 3198.9 posted in February 2022. Since the high posted in Feb 2022, the company has posted to back to back stellar quarterly results in the form of June and Sep 2022 quarters and the commentary related to demand environment and capex remains strong.
In the past there have been major supports between 3100-3200. The targets of a bearish head and shoulders breakdown marked on the chart have almost been achieved.
Major selling seems to have been done last week. Promoter interview on CNBC and press note after selling clarifies the reasons for stake sale. (Devansh Jain Talks About InoxGFL Group’s Debt Reduction Plans | Halftime Report | CNBC-TV18 – YouTube )
Stock price has been taking support at the 200 dema placed at 3174 as on today.
Technically the current level of 3100-3200 seems to be important level to look out for support and a possible reversal.
Attached chart has all the above details. (disc: invested as disclosed before.)
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