Technicals – it is all in the timing

Technical analysis is a timing tool, that when used in combination with fundamental analysis, can be extremely effective in fine tuning the all important decision of WHEN to buy and sell stocks. A bespoke component of the QMG technical analysis service is providing input into our clients fundamentally-based investment process / models which provides an additional filter or screen. The instances when the technical and fundamental views on a stock are aligned adds to the conviction of the idea i.e the “timing” (technicals) and “the story” (fundamentals) are in sync. Technical analysis is a means of identifying the trend change / turning points relating to momentum and sentiment. There will be times when stock price movements and direction are not being driven by the underlying company fundamentals, and other factors are influencing the market. It is during these periods and ones of volatility that technicals can be extremely valuable in identifying the turning /trend reversal points.