Friday, March 31, 2017

Technical Analysis of Stocks in Dhaka Stock Exchange: A Pause

One of the main objectives of writing the articles on Technical Analysis of Stocks in Dhaka Stock Exchange was to evaluate whether it works or not in Bangladesh Stock Market - as many people say that the market is manipulated.

From my previous experience, I have seen that it works around two-thirds of the time. But this time, I plan to evaluate the ~100 analysis done from Nov '16 till End of March 2017.

Hopefully, by next three weeks I will be able to complete the evaluation and write an article on: "Does Technical Analysis Work? An Empirical Evaluation"

However, before taking a pause, I will try to take a look at the Index in general and try to guess what might happen next!

In the weekly chart, the last candle looks like a sort of doji - the market is undecided! Thus, the next two candles will show the next path - up or down.

However, technical indicators are hinting at a correction. The decrease in volume also is a sign of weakness.

That is not to say that all stocks will fall. Some are on bull moves, some are nearing reversals while some may fall - possibly like Islami Bank (which I earlier thought would give a third wave) which disappointed with its paltry dividend.

Take care and best wishes as always . . . 













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