New Idea ACI good for swing trade LongArchean Chemical Inds Added at 593 and 614 Will add more above 647
ACI trade ideas
ACi looks good for long-term investingThe price has changed from downtrend to uptrend in the major trend and after the pullback it has failed to make a Lower Low which is indicating that trend has successfully changed from downtrend to uptrend and it will give a potential bullish movement. Invest at your own risk. DYOR.
Archean chemical I think this underrated company currently.
I know this company, physical visited
1st ) It make bromine, demand is good
2nd ) solt demand is also good
3rd ) potash (khad) use in farming demand is not good,
If potash demand up may this company unlock value more faster.
Prons-
Company has reduced debt.
Company is almost debt free.
Company has delivered good profit growth of 46.8% CAGR over last 5 years
Company has a good return on equity (ROE) track record: 3 Years ROE 60.0%
Debtor days have improved from 37.6 to 29.8 days.
Archean Chemical Industry: An undervalued Chemical GemNSE:ACI is looking ripe for a breakout in the near future. NSE:ACI has been languishing at 500-550 price level since 18th April 2023. However the candlesticks that have appeared on 3rd and 4th August 2023 gives hints about an upcoming bull run which could see it cross the 650 mark.
Technical Analysis: Since 8th June 2023, NSE:ACI has been on a continuous downtrend but on August 3rd after opening at 495 (the lowest price it had reached in 2023), it formed a green candle and followed it up with a green candle the next day. Green candles have appeared showing a characteristic of hitting the bottom and bouncing back up. StochRSI has also crossed over the indicator line and has exited from the OverSold zone. This indicates the bullish momentum in the stock.
Fundamental Analysis: With a PE ratio of 16.36, it is well below the sector PE ratio of 20.93. In the financial year 2022-23, income has risen 103%, assets increased by 14% and liabilities reduced by a massive 74% and a positive cash flow of 396 crores. Thus the stock seems undervalued for the might of its financial statements.
Strategy: You can enter at current levels (515 - 520) with a stoploss at 490. Once NSE:ACI moves above 560, you can increase the stoploss to 540 - 550. Exit the position once NSE:ACI touches 650 - 660.
Triangle Pattern-if Downside target 20%
-upside target 26%
-wait for the candle to close below support line or above resistence line
Archean Chemicals - Channel BottomAn interesting new IPO listing..one of the few recent IPO's that did well...additionally one of the few chemical co's which survived the carnage..
An interesting co as a market leader in Bromine and Industrial salts..one of the lowest cost produces but also one which is relative more green while producing than competition. Good forward outlook + expansion after 9-12 months.
At the upward channel bottom..long at current prices with a stop loss below 600 (50EMA).
Archean Chemical Industries LimitedACI:- Stock has formed head and shoulders pattern wait for breakout till then keep an eye
Hello traders,
As always, simple and neat charts so everyone can understand and not make it too complicated.
rest details mentioned in the chart.
will be posting more such ideas like this. Until that, like share and follow :)
check my other ideas to get to know about all the successful trades based on price action.
Thanks,
Ajay.
keep learning and keep earning.
