Technical analysis

How it is used

Popular with short-term traders. Technical analysts, or chartists, talk about trends, support and resistance, moving averages and indicators such as RSI. Reports say a stock 'looks strong on technical grounds' or that 'technicals' point lower.

Example sentences

1. Technical analysis shows the stock is close to a strong resistance level.

2. Many day traders combine technical analysis with news alerts.

Common collocations

• use technical analysis
• technical indicator
• technical analyst
• on technical grounds

Related terms

• fundamental analysisA way of judging an investment by studying the company's business, financial statements, management, industry and the wider economy to estimate its real value.
• moving averageThe average price of a security over a fixed number of recent days, recalculated every day, used to smooth out short-term swings and show the trend.
• support levelA price level where a falling stock has often stopped and turned back up in the past, because buyers tend to step in at that price.
• resistance levelA price level where a rising stock has often stopped and turned back down in the past, because sellers tend to appear at that price.
• candlestick chartA price chart in which each period is shown as a 'candle': the body shows the opening and closing prices, and thin lines show the highest and lowest prices.

More terms: Technical & Fundamental Analysis

• earnings report