Technical Analysis

Reuters  11 hrs ago  Comment 
Britain's shock vote to leave the European Union may tie the U.S. Federal Reserve to near zero interest rates for far longer than expected, according to new research indicating the U.S. central bank is now tightly bound to international economic...
Benzinga  Jun 23  Comment 
When you think about technical analysis, portability is probably not the first thing that comes to mind — in fact, it seems quite contradictory. After all, we often picture technicians as being glued to their trading desks and staring at their...
Forbes  Jun 22  Comment 
In trading on Wednesday, shares of PBF Energy Inc (NYSE: PBF) entered into oversold territory, changing hands as low as $23.30 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis...
MarketWatch  Jun 21  Comment 
The major U.S. benchmarks have rallied respectably from the June low, reclaiming notable technical levels ahead of this week’s Brexit vote. The specific areas match the 50-day moving average, currently S&P 2,080 and Dow 17,800.
OilVoice  Jun 21  Comment 
Technical analyst Jack Chan believes a correction in oil prices is underway and advises investors to use caution in a vulnerable market. Our proprietary indicator has turned down from multiple dive
Forbes  Jun 16  Comment 
In trading on Thursday, shares of Sinopec Shanghai Petrochemical Co., Ltd. (NYSE: SHI) entered into oversold territory, changing hands as low as $45.015 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a...
MarketWatch  Jun 14  Comment 
The S&P 500 Index is challenging its first significant technical support, an area matching the 50-day moving average, amid heightened concerns over the June 23 Brexit vote.
Forbes  Jun 13  Comment 
In trading on Monday, shares of HollyFrontier Corp. (NYSE: HFC) entered into oversold territory, changing hands as low as $25.52 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis...
The Hindu Business Line  Jun 9  Comment 
For some retail investors, day trading is like an addiction. To them, the simple advice from Manish Hathiramani, proprietary trader, technical analyst and expert in statistical stock trading in India,...
OilVoice  Jun 7  Comment 
Technical analyst Jack Chan demonstrates the divergence between oil equity prices and the underlying commodity. Oil stocks as represented by OSX remains on a major sell signal which is now two yea


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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