Iran is very well known for its petrochemical industry among countries around the world and in Mena region as well. Producing millions of barrels of petroleum and other relevant liquids per day, the geopolitical location to access international waters, existing infrastructural facilities in the country along with the growing local and emerging markets have made Petrochem as the most important and driving engine of almost all local industries in Iran. Moreover, in terms of market capitalization, petrochemical industry is the largest sector in Tehran Stock Exchange (TSE) which forms almost a quarter of its market cap. All mentioned advantages plus a lot more, makes it an important must-to-analyze industry to have an outlook of.
The near-term supportive zone is believed to lie at 4900-5000x as this area overlaps on 50% retracement of the recent move from 4300x to 5550x and also a pull back to 100% Fibo extension ratio after an unstable touch of 161.8% ratio from the same Fibonacci. Combination of these factors with the newly formed short term trend encourage us to draw the lower channel line passing this area. From the timing point of view, a correction of 46 trading days is getting close to 61.8% retracement ratio of its previous rally (lasted for 85 trading days)
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