A company’s stock drive is purely driven by Supply and Demand. Investors/Traders buy or sell to other institutions and individuals at a price that is agreed upon. The exchanges facilitate this.
Any of the company’s financial records, future prospects, product lines, etc. just affect how the public and institutions view the company’s current value and their future value.buyers and sellers’s perception to stock movement and market news lead to frequent changes of price.
Fundamental analysis is based on quantitative data. It can be broadly categorized as below.
1. Economy Analysis
2. Industry Analysis
3. Firm/Company Analysis
Technical analysis basically knows the past patterns of a particular stock or market for a given period of time in order to predict its future
The field of technical analysis is based on three assumptions:
The market discounts everything.
Price moves in trends.
History tends to repeat itself.