Monday, March 1, 2021

China BlueChem (3983.HK) – More Potential Upside Ahead.


The fundamentals of China BlueChem (3983.HK) looks promising with Crop price at 7-year high, driving fertilizer demand and global tight supply of urea. Domestic urea price rose Renminbi 200/ton MoM to Renminbi 2,100/ton in early-Feb, due to spike in global pricing (up more than 30% since end of 2020).


The stock is poised to benefit from the year on year jump in urea given its relatively stable natural gas cost under long-term contracts.


Looking at the technicals, the stock has broken out from its long-term downtrend, trading at a day-high of 2.12 (at the point of this write up) today and its bullish chart pattern showing further potential upside.

First Target – 2.30

Second Target – 2.48

Third Target – 2.95

Stop Loss – 1.75

All posts and charts are for educational and illustration purposes only

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