EFERT Breakout & Reversal: Chart Analysis & Trade Strategies

13 Tem

*EFERT Chart Analysis:*
*Current Price:* 168.00 PKR
*Resistance Levels:* Weak High: Around 175 PKR
*Support Levels:* Strong Low: Around 145 PKR
*Intermediate Support:* Around 155 PKR
*Trend:* _The stock has shown a recent uptrend with a sharp rise from the lows._
_The consolidation phase appears to be occurring between 160 PKR and 170 PKR._

*Report Insights:*
*Earnings Expectations:* _Expected EPS for 2QCY24 is 3.85 PKR, which is a 52% decline QoQ._
_Expected DPS is 4.0 PKR for 2QCY24._
*Operational Challenges:* _Decline in sales volume due to the Enven plant's turnaround until mid-Jun-2024._
_Net revenue expected to decline by 43% QoQ._
*Market Performance:* _EFERT has outperformed the KSE100 Index with a 49% gain YTD._

*Trade Strategy for Engro Fertilizers Ltd (EFERT):*

*Breakout Trade:*
- *Entry*: 176 PKR
- *TP1*: 185 PKR (5.11%)
- *TP2*: 200 PKR (13.64%)
- *SL*: 170 PKR (3.41%)
- *RR Ratio*: 1.5 (TP1), 3.53 (TP2)

*Reversal Trade:*
- *Entry*: 155 PKR
- *TP1*: 170 PKR (9.68%)
- *TP2*: 185 PKR (19.35%)
- *SL*: 150 PKR (3.23%)
- *RR Ratio*: 3 (TP1), 6 (TP2)

*Key Trade Confirmation Points:*
_*Volume:* Look for increased volume on breakout above 176 PKR or on dip buying at 155 PKR._

_*Candlestick Patterns:* Watch for bullish reversal patterns near support levels or strong bullish candles on breakout levels._

_*Market Sentiment:* Keep an eye on overall market trends and any news specific to the fertilizer sector or EFERT._

*Confluences:*
_*Sector Performance:* The fertilizer sector's relative strength compared to the KSE100 Index supports a bullish outlook._

_*Dividend Announcement:* A confirmed dividend of 4.0 PKR/share could boost investor confidence._

_*Technical Indicators:* Use RSI, MACD, or moving averages to confirm entry points and momentum._