Technical analysis has both conceptual and theoretical understanding Levy July 1966 Financial statistics play a major role in depicting the information to a share market analyst who in turn studies each and every compilation of financial reports in order to arrive at the intrinsic value of the earnings of a corporate company The stock is recommended to be purchased only if the intrinsic value of the security is higher than the current market value of the security The term Technical in the context of stock market analysis means to study the market in contrary to its external factors Many tools for technical analysis have been found over the years To assign intrinsic value to a stock certificate is considered pointless The vast difference between the estimated value and the actual value has always been the rule In short the market analyst can know the current market price from the market itself as it provides him with all the primary information that he can hope to know Price always tends to move in trends and they tend to change as and when the demand and supply changes Hence even the one with experience will find it of less significance The analysis of financial and economic fundamentals must ultimately be the underlying foundation for security appraisal Market prices will in the long run tend to move toward intrinsic values
