Hub Power Co. Ltd. (Daily chart analysis):Current Situation:
Price: 213.18 PKR, down 0.68%
The stock is in a correction phase after a parabolic rally to 250+ in October
Key Technical Observations:
Trend Structure:
Strong uptrend from August-October 2025, breaking above long-term resistance
Currently pulling back after reaching the 1.618 Fibonacci extension (275.25)
Price rejected at the red diagonal resistance trendline
Fibonacci Retracement Levels (from recent rally):
0.236 (76.72): Extreme support - major breakdown level
0.382 (86.89): Deep correction zone
0.5 (98.72): Half retracement
0.618 (108.56): Strong support zone ✓
0.786 (132.56): Current battle zone - KEY LEVEL
1.0 (140.40): Previous resistance, now support
Critical Support/Resistance:
Support:
Immediate: 210-213 (current price action)
Strong: 191-195 (1.618 Fib + psychological level)
Major: 140-145 (1.0 Fib + previous resistance turned support)
Critical: 132 (0.786 Fib)
Resistance:
Immediate: 220-225 (short-term)
Strong: 240-245 (recent highs)
Major: 250-255 (all-time high zone)
Volume Analysis:
Multiple volume spikes throughout the chart (circled)
Recent volume elevated but declining - suggests weakening buying pressure
Distribution pattern forming at the top
Pattern Recognition:
Potential rising wedge/parabolic blow-off top pattern
Red trendline acting as dynamic resistance
Price struggling to hold above the 1.618 Fib level (191.90)
Technical Outlook:
Bearish Scenario (Higher Probability):
If 210 breaks, expect a move toward 191-195 zone
Break below 191 could trigger deeper correction to 140-145 (30% pullback)
The parabolic nature of the rally suggests a significant retracement is likely
Bullish Scenario:
Needs to reclaim and hold above 220-225 with volume
Break above 240 would invalidate the correction and resume uptrend
Target: Retest of 250-260 highs
Trading Strategy:
Short-term: Bearish - avoid catching falling knives
Watch for support at 191-195 for potential bounce
Conservative buyers should wait for stabilization around 140-150 zone
Stop loss for any long positions: Below 190
Risk Assessment: The steep rally suggests profit-taking pressure. The stock may need time to consolidate before the next leg up. Be cautious of FOMO buying at current levels.
