This time we will be doing the technical analysis of Snowman Logistics Ltd. The main questions that are required to be analysed are:
What is snowman Logistics?
Why is snowman logistics falling?
Is this share a good buy at this point?
1. What is snowman Logistics?
Firstly, we need to know about the company, even though we are doing technical analysis. Snowman is India’s leading integrated temperature-controlled logistics service provider, specializing in providing warehousing, distribution, and value-added services across the country. Their state-of-the-art temperature-controlled warehousing facilities in prime locations like Mumbai, Chennai, and Bengaluru coupled with the integrated distribution solutions allow them to ensure product quality and temperature integrity of customers’ products from point of origin to the consumption point. I have also found their corporate profile presentation, if you want to see it, email us at “[email protected]”
2. Why is snowman Logistics share falling?
Secondly, the main questions people discussing on twitter, instagram, etc. i.e. WHY IS SNOWMAN FALLING? Well, we know there was news about the Adani group increased stake in snowman logistics ltd. and news of snowman getting COVID-19 vaccine storage projects, but after some time the adani group started selling the stake, but we don’t know to whom they were selling to.
I have talked to some people doing online business and they said that, shipping and delivery are increasing and that is also a good point for snowman but still the company is still falling. Even on the budget day the share barely moved.
The reason is still unknown about the exact reason of this approx. 30% decline, so, why are we discussing it today? Well, we won’t be if I haven’t seen the bottom out pattern on the daily chart.
3. Is Snowman Logistics Share a good buy?
Below is the Daily chart of snowman logistics ltd. share.
Today, there was a long-awaited (we can say expected) move near the resistance line and 100-DMA (Simple moving average) at Rs. 50.
|Today’s Movement When today, the share reached Rs. 45 there was a rapid move of approx. 13% upside with a huge volume which can be seen with the below 15 min chart. The share is still maintaining the highest point which is a good sign for further upside (maybe today or tomorrow).|
Maybe, some big buyer has invested in the company or number of other reasons to follow.
So, snowman logistics share price target can be the previous highs made by the company i.e. Rs. 70 to 72.
Thank You for reading this, If you like it please drop a comment and if you have a query please drop an email.
Disclaimer: We are now doing any snowman logistics stock recommendation, we are just analyzing the pattern and the decision is to be made by the individual.