How to analyze stock charts

Crack the key terms used in quarterly and annual financial reports of companies

With an eye on the charts

SUPPORT

The lower limit of the price of a stock can reach to get the price recovery. It means that the price may have fallen too, reached rock bottom. This plot point is considered the best time to buy the paper.

RESISTANCE

Limit higher than the price of an action can achieve. This point of the graph shows that the role has had a great recovery and can start to fall. This is the time indicated to sell the stock and pocket the profit.

TRENDS PRIMARY, SECONDARY AND TERTIARY

The price change in the role as a trend of high or low. They vary the period of analysis: longer (over one year), medium (few months) and short-term (weeks).

With an eye on the fundamentals

PRICE TARGET

Projection of the stock price consistent with its economic fundamentals such as future cash flow and potential of the sector. For analysts, is the potential for price appreciation in 12 months.

RECOMMENDATION

Analysts indicate whether it is time to buy, sell or hold the paper in the wallet.

DIVIDEND YIELD

Estimate of how the action will pay dividends. The rate is considered ideal value of 6% ??per year.

CORPORATE GOVERNANCE

Practice good relations with the market, to ensure equality between the minority and majority shareholders, transparency in management and information about the results.

 

Font:Β http://vocesa.abril.com.br/organize-suas-financas/materia/como-analisar-graficos-acoes-492599.shtml#

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