PARQ.N DailyThis chart and analysis are not financial advice. Do your own research before trading or investing.
CSELK:PARQ.N0000
What's happening in PARQ?
Fundamental Analysis:
PARQ (SwissTec Ceylon PLC) reported exceptional year-over-year (YoY) growth in Q2 of 2024, attributed to strong performance in specific segments:
Tile Mortar and Grout Segment: Consistently delivered growth in turnover and profits, showing resilience and stability.
Aluminum Segment: This segment had a substantial positive impact on quarterly and annual growth in turnover and profit. This could be due to increased demand or strategic improvements.
Given the favorable construction sector trajectory, the company’s prospects look optimistic for Q3 and Q4.
Additionally, PARQ’s dividend-paying history suggests investors may see an attractive dividend in early 2025.
Technical Analysis:
Price Action: The stock appears to be in a strong uptrend, pushing against a key resistance level around LKR 29.50. If it breaks above this level, further upside could be expected, though it might face resistance at the next Fibonacci levels.
Support Levels: There are two notable support zones: Near LKR 27.00 - 27.50, a recent consolidation zone.
Between LKR 25.00 - 26.00, which aligns with a significant Fibonacci retracement level (50%).
Moving Averages: The 30-day moving average (DMA 30) (yellow line) trends upwards, indicating short-term bullish momentum. This can act as dynamic support if the price pulls back.
Volume: Higher volume in recent upswings suggests buyer strength and institutional interest in this stock.
RSI (Relative Strength Index):
The RSI is hovering around 75.93, indicating an overbought condition. While this reflects strong momentum, it may also hint at a potential pullback or consolidation in the near term.
Summary:
Given the combination of strong fundamentals and technical indicators:
Bullish Scenario: A breakout above LKR 29.50 could signal a continuation of the uptrend. Investors could consider this a buying opportunity, though mindful of overbought RSI.
Bearish Scenario: If the stock fails to break above LKR 29.50, a retracement to the support zones around LKR 27.00 - 27.50 or LKR 25.00 - 26.00 could present potential entry points for those looking to enter at a lower price.
