PFC In The Long Term Buy Zone

PFC(Power Finance Corporation) is in a downtrend since Feb 2020. It made a high of 140 in Feb 2020 and made a low of 74 in May 2020 that is more than 40% correction from the Feb high.

We have found an amazing price movement from the mid-2013 to mid-2020. In July 2013 stock took support around the all-time low. Form the low of 2013 stock had rallied more than 200% and made a high of 172.4 in June 2014.

After that high, it retraced around 35% from its high and bounced back from the 50% Fibonacci Retracement that starched from the low of 2013 to the high of 2014, to the 157, but failed to made a new high and went into the long term downtrend. In 2016 it got consolidate for the first half and formed Inverse Head and Shoulder Pattern. The breakout of the pattern confirmed the trend reversal and stock rallied more than 130% from the low of 2016 and made a high of 168 in 2017.

After making a high of 168 it halted there for few weeks and corrected and corrected around 30% from its 2017 high and bounced back to the 150 level but again it failed to cross its 2017 high. From the lower high(150) of 2017, it turned into a downtrend and in 2018 it made a low of 67.5.

In 2018 it again got consolidated for more than 5 months and formed the Inverse Head and Shoulder Pattern. After the breakout, it had rallied to 140 and gave a 70% return.

Again the stock is trading within the same Zone of 2016 and 2018.

For the last 3 months, it has been consolidating and forming an Inverse Head and Shoulder Pattern. The breakout of the pattern would confirm the trend reversal in the stock. If the stock confirmed the trend reversal we are expecting 170 level. 170 level is also a Fundamental Target according to the book value.

On technical bases, 170 is a major long term resistance.