Technical Analysis

Capital Essence's Investment Blog- 錢途集團 » Page not found  Sep 3  Comment 
This is Capital Essence's CEM News - Market Outlook (the technical analysis of financial markets) for September 3, 2015. ...our “U.S. Market ETF Trading Map” rates the S&P as a Sell. The index rebounded nicely after last week’s...
Forbes  Sep 1  Comment 
The stock market terrified investors again with a 3% plunge Monday, deepening the sell-off from its May 20th high to 10%. Market watchers blamed worries over weak Chinese economic data for inciting the selloff. The doyenne of technical analysis,...
The Hindu Business Line  Sep 1  Comment 
The stock of Arvind encountered significant long-term resistance in the band between ₹320 and ₹330 in early August 2015. It reversed direction after that, triggered by negative divergence in the d...
MarketWatch  Sep 1  Comment 
The U.S. markets’ recovery attempt has fizzled, and the major benchmarks are once again traversing less-charted territory.
Forbes  Aug 30  Comment 
A technical analysis of China's stock market after this summer's crash.
Capital Essence's Investment Blog- 錢途集團 » Page not found  Aug 28  Comment 
This is Capital Essence's CEM News - Market Outlook (the technical analysis of financial markets) for August 28, 2015. ...our “U.S. Market ETF Trading Map” rates the S&P as a Sell. Thursday upside follow through served as a confirmation...
Forbes  Aug 27  Comment 
The stock market’s best percentage gain since 2011 has helped to calm investors and in early trading Thursday global markets have continued higher. Clearly the severity of the recent decline has caused significant technical damage that typically...
MarketWatch  Aug 25  Comment 
Though a corrective bounce is underway, the August downdraft has inflicted broadly-based damage, and an extended basing period is likely due before the U.S. markets’ next durable leg higher.
The Economic Times  Aug 25  Comment 
The brokerage house said technical analysis suggests that CNX Nifty Index has broken below its crucial support of 7940-8000 levels.


Technical Analysis is the the study of the historical trend in an investment's price in order to predict future price movements.

Care must be taken when using technical analysis to be aware of fundamental events as they can invalidate prior technical analysis and cause large market shifts. In fact, a competing form of analysis is fundamental analysis.

The process of technical analysis can be applied to most markets including markets for commodities, securities, and currencies. Key concepts involved in technical analysis include: charts, support, resistance, trends and indicators.


Charts are graphical representations of market price and/or volume information in some time frame. For example, published charts generally provide hourly, daily or weekly data. One of the most common types of charts used for technical analysis is the Candlestick Chart. Formations, such as the commonly recognized Head and Shoulders pattern, can often be used to predict future price movement with a relatively high degree of accuracy.

Support Level

Support, within a particular time frame, is defined as a point at which a falling market price finds a bottom and does not fall any further. The price appears to bounce off of support levels and return to higher levels. There is no guarantee that a prior support level will continue to be a support level in the future.

Resistance Level

Resistance is similar to support. However, resistance is the point at which a rising market price finds a top and does not rise any further. Again, resistance may be applied to a time frame and of course a previous resistance level may fail to provide resistance in the future.


Market prices will often drift higher or lower in a series of waves. If a market is making higher highs and higher lows then it is generally considered to be trending up. If a market makes successively lower lows and lower highs then it is considered to be trending down.

It is often useful to draw a trend line along the levels of support and resistance. In particular, it is common for these trend lines to form a channel which can then be used to make trading decisions. Of course, a market may follow trend lines for a period of time but there is always the risk that it will stop doing so.


Technical analysis often relies on the use of indicators. These indicators use mathematical formula to analyze price (and perhaps volume) action. Charts can be made using the indicator values and the information they provide can also be used to make trading decisions.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki