This Pharma Stock is all time low
Greetings, readers! Today, we delve into the world of stocks to dissect the reasons behind the persistent decline of two major players in the market – Astral and Gland Pharma. The big question on everyone’s mind: should you consider buying them? Let’s unravel the intricacies of these stocks to help you make an informed decision.
Astral: The PVC Price Plunge
Astral, a large cap stock, has seen a sharp decline from its peak at 2,600. The primary culprit behind this downfall is the plummeting prices of Polyvinyl Chloride (PVC), a crucial raw material for companies like Astral. With PVC constituting 60-70% of pipe manufacturers’ revenue, the decrease in PVC prices forces companies to sell existing inventory, manufactured at higher PVC rates, at reduced prices. Consequently, profit margins dwindle, leading to substantial inventory losses.
Technically, Astral’s stock has traded sideways for the past four months, fluctuating between 1,820 and 2,150. A potential buying opportunity arises if the stock crosses and closes above the 1,975 mark, as indicated by the lower Bollinger Band and positive momentum indicators on the weekly charts. A definitive signal to buy would be the widening of the Bollinger Bands, indicating an upward trend.
Gland Pharma: Struggling Amid Challenges
Gland Pharma finds itself near its all-time low, primarily due to production delays, supply chain disruptions, and lackluster performance in Q3. The company faces lingering issues, including stopper-related problems after a previous syringe incident. As of now, the stock is not a buy option. A favorable scenario for potential buyers would be two consecutive bullish closings above the 1,280 level, coupled with the resolution of the Bollinger Bands’ resistance.
In summary, Astral shows promise for buyers if it surpasses the 1,975 level, while Gland Pharma requires vigilance until it demonstrates stability above the 1,280 mark.
We hope this analysis provides valuable insights into these falling stocks. If you found this information helpful, please show your support by hitting the like button below. For more updates on market trends and insightful analyses, subscribe to our blog and turn on notifications.
Thank you for reading, and happy trading!
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