UPFL: Potential Double Bottom Formation Amidst Bearish TrendThis chart represents the monthly price movements of Unilever Pakistan Foods Ltd. (UPFL) on the Pakistan Stock Exchange (PSX). Here’s a breakdown of the chart and its implications:
Current Price:
- The current price is around 17,000 PKR, with the price having decreased slightly (-0.44%).
Support Levels:
There’s a significant support level near 15,000 PKR. This has been a crucial support zone in the past.
Another support level seems to be around 11,582 - 12,000 PKR, where the price could potentially stabilize.
Past Price Movements:
- The stock has experienced a significant rise, especially from 2020 onwards, where it surged to its all-time high near 26,000 PKR.
- Recently, it has entered a downtrend after hitting the peak, with a clear pullback from the highs.
Future Prediction (Technical Analysis):
- The orange curves drawn suggest a possible double bottom pattern forming. This pattern generally indicates a reversal after a downtrend. (Wait for confirmation)
- According to this prediction:
- The price could drop further, potentially revisiting the 12,000 PKR support area.
- Following this, a rebound towards 17,000 - 18,000 PKR is anticipated.
- A second bottom may form, after which the stock might attempt to rise again, potentially breaking out of the 17,000 - 18,000 PKR range and continuing upward.
Key Observations:
- Bearish Trend: The stock is currently in a bearish phase after a prolonged uptrend.
- Potential Reversal: The double bottom formation hints at a possible reversal, but confirmation is required at the 12,000 PKR level.
Overall, if the price holds above 12,000 PKR and confirms a double bottom, the outlook could turn bullish. However, further declines are possible before any reversal materializes.
