Question 53 of 90
Technical analysis attempts to predict future stock price movements by
A
Studying the financial performance of the company
B
Analyzing the stock price movements of a company
C
Studying financial statements
D
Evaluating the quality of management
Correct Option:
B
Explanation
Technical analysis predicts future price movements by analyzing historical price movements, trading volume, charts, and technical indicators. It is based on the assumption that past market behaviour can help forecast future price trends.
