Technical Analysis

MarketWatch  Aug 2  Comment 
The major U.S. benchmarks are off to a soft August start, pulling in from the 2016 peaks. Against this backdrop, the S&P 500 is pressing first support — spanning from about 2,155 to 2,159 — an area defining the immediate bull-bear battleground.
Forbes  Jul 28  Comment 
In trading on Thursday, shares of Whiting Petroleum Corp (NYSE: WLL) entered into oversold territory, changing hands as low as $6.73 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis...
Benzinga  Jul 27  Comment 
The following is a technical analysis by Michael Kahn, a CMT for Technician by ChartIQ, and was originally published on their blog.  In this clip, Kahn does a quick technical analysis of Apple, Inc (NASDAQ: AAPL) after they reported...
Forbes  Jul 27  Comment 
In trading on Wednesday, shares of Cheniere Energy Partners L P (AMEX: CQP) entered into oversold territory, changing hands as low as $27.2705 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical...
Benzinga  Jul 27  Comment 
One of the most common technical analysis tools that traders use is the simple moving average (SMA). In fact, when you create a stock’s bar chart, the 50-day SMA and the 200-day SMA, two of the most commonly-used SMAs, are often included by...
Benzinga  Jul 26  Comment 
The following is a technical analysis of restaurant stocks by Michael Kahn, a CMT for Technician by ChartIQ, and was originally published on their blog. In this clip, Kahn analyzes McDonald's Corporation (NYSE: MCD), Panera Bread Co (NASDAQ:...
MarketWatch  Jul 26  Comment 
The U.S. markets’ bigger-picture technical backdrop continues to support a firmly-bullish view. Consider that each major stock benchmark has reached less-charted territory, amid broadening sector participation, while selling pressure remains...


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.

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