# Sazgar Engineering Works Limited (SAZEW) – PSX Weekly Analysis

SAZEW has been one of the most actively traded and high-growth stocks on the PSX in recent years, driven by its expansion in the auto sector (notably its auto rickshaw and EV ventures). The weekly chart highlights an AB=CD harmonic pattern, supported by Fibonacci retracements and divergence signals.

🔎 Technical Structure

The stock has completed a major impulsive leg (A → B → C) and is now projecting towards point D, suggesting further upside.

Fibonacci retracement zones:

0.5 level at Rs. 1427

0.618 level at Rs. 1339
These serve as ideal buy zones (buy limit between Rs. 1326–1427).

RSI currently at 71.03 indicates strength but also shows bearish divergence, suggesting potential short-term pullback before continuation.

📈 Trade Plan & Projections

Buy Limit Zone: 1326 – 1427

Stop Loss: Rs. 1043 (below key support)

Take Profit 1 (TP1): Rs. 1786

Take Profit 2 (TP2): Rs. 2246

This gives traders a structured risk-reward setup with targets significantly higher than current levels (Rs. 1579).

📊 Outlook in PSX Context

SAZEW has been a retail favorite on the PSX due to its consistent price rallies and sectoral growth potential.

While the short-term may see volatility due to overbought RSI and divergence, the long-term trend remains bullish with projections pointing to new highs around Rs. 2246.

As one of the standout performers in the Auto & Allied sector, SAZEW represents how investor interest in PSX is also shifting toward non-traditional growth plays beyond energy and banks.

✅ Conclusion:
Sazgar Engineering Works is technically positioned for another bullish leg on the PSX. With a buy zone between Rs. 1326–1427, risk-managed entries could aim for Rs. 1786 in the medium term and Rs. 2246 in the long term. Investors should watch RSI divergence carefully, but overall the stock continues to show growth potential and leadership within PSX’s auto sector.