UK Technical Analysis Report

Should we wait for the next quarterly results, better sales, upsurge in profits, or buy at low valuations? - These are some of the vital questions that grip the mind of curious investors!

(Introducing our new technical analysis report)

Kalkine’s ‘Technical Analysis Report' provides a new technical analysis-driven research product to invest in stocks which form a part of the LSE-Listed Stocks. This product is specially designed for investors with adequate risk appetite and financial flexibility, who typically seek opportunities for a short time span (2-4 weeks).

What Drives the Stock Price Movements?

Selecting stocks is a challenging task amid highly volatile financial markets. Stock markets often depend upon the sentiments of the market participants, and the two powerful emotions that govern their behavior include greed and fear. Evolving fundamentals and macro-economic factors such as GDP growth, social and political stability, inflation, currency, and interest rates also influence the stock prices, which move up and down creating an identifiable price pattern. Typically, technical analysis is a way to gauge and benefit from these repeated patterns in a short time horizon.

Notably, the FTSE All-Share Index which is an aggregation of the FTSE 350 Index and the FTSE SmallCap Index yielded an overall return of -10.92% over the past one-year, and a YTD return of -14.47% till mid-November 2020 (Source: Refinitiv).To gauge price trends and benefit from them, Kalkine’s technical analysis report developed after deep-research and backtesting by a team of qualified technical experts engaged in quantitative research might be of help.

Considering above, Kalkine’s Technical Analysis Report Offers Below Key Features: -

1. Extensive Technical Research: Kalkine’s technical report draws recommendations purely based on a thorough analysis of technical tools such as Relative Strength Index (RSI), Volumes, Simple Moving Average (SMA), Price Patterns, Candlestick Patterns, Retracement Levels, Trends, etc.

2. Focus on the Leading Sectors: Kalkine recommends FTSE listed stocks from leading sectors including Telecom, Technology, FinTech, Transport, Real-Estate, Healthcare, Renewable Energy, E-Commerce, etc. to gain from trending themes. 

3. High Volume Stocks Provide an Edge: Volume plays a crucial role in analyzing upswing and downswing trends. Kalkine identifies stocks with high volumes which are more liquid as it helps the investors to easily execute trades and may have the potential to yield decent returns. 

4. Better Risk-Reward Scenario: Risk-Reward ratio represents the prospective reward an investor can achieve for risks undertaken. Investors can weigh their decisions in the light of an appropriate entry-level, target prices, and a pre-defined stop loss. 

5. Swing Trading Opportunity: By virtue of seizing short to medium-term gains in a stock, swing trading provides an edge over fundamental analysis as investors are not required to hold stocks for long to generate desirable returns, thereby locking-up capital for long duration. 

Few FTSE-Listed Stocks that Witnessed Sharp Rally in a Short Timespan

Few FTSE listed stocks that have witnessed a sharp rally in a short time span include Kin and Carta PLC (LSE: KCT.L) and National Express Group PLC (LSE: NEX.L) as depicted in below charts. It was noted that KCT which is a global digital transformation business rallied ~27% in 4 weeks’ timeframe after the breakout of the double bottom pattern. The movement was also supported by RSI (~ 60 at the time of breakout) coupled with 20 days SMA trading below the current market price.

National Express Group PLC (LSE: NEX.L) which is a multi-national public transport company yielded more than 37% after the breakout of head and shoulders bottom pattern from the lower levels within two weeks’ time. The movement is accompanied by confirmation of technical indicators such as RSI, 20 days SMA, and 50 days SMA.

Data Source: Refinitiv, Thomson Reuters, Chart Created by Kalkine Group

The returns generated by above stock picks (KCT and NEX) were significantly higher than returns yielded by FTSE All-Share Index over the same timeframe.

How does Kalkine’s Technical Analysis Report Help?

Kalkine’s technical analysis reports are easy to comprehend with actionable insights for UK’s equity investors around potential investment themes. This report aims to cover stocks after an overall assessment of global market performance, taking cues from major global news and or events impacting the market sentiments, and analyzing the FTSE All-Share Benchmark Index technically.

It must be noted that investment recommendations provided under this product are solely based on technical parameters, and fundamental performance of the stocks have not been considered in the decision-making process. Key risks which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, and socio-political risks etc.

Note: Trading decisions require a thorough analysis by investors. Technical reports in general chart out metrics that may be assessed by investors before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.