1.

0 INTRODUCTION
Technical analysis is a method of analyzing financial markets and stocks by examining
statistical trends and chart patterns. This is a common approach used by traders and investors to
make trading decisions based on historical market data. Technical analysts use charts and
technical indicators to identify trends, levels of support and resistance, and patterns that indicate
potential future price movements. Look at data such as price, volume, and open interest to
determine whether a stock or other asset will rise or fall in value. Technical analysis is based on
the idea that a security's price reflects all of the information available, both fundamental and
market sentiment. It can be used on a wide range of financial instruments, such as stocks, bonds,
currencies and commodities.
Technical analysis is commonly used among traders for several reasons. It is easy to
comprehend because it uses charts and technical indicators that are easy to interpret and
understand. It relies on historical data so traders can recognize patterns and trends that can be
used to make informed trading decisions. It is suitable for short-term trading as it can identify
entry and exit points based on short-term market fluctuations. It is often perceived as objective
since it relies on data rather than subjective opinions or feelings. Technical analysis is widely
adopted in the financial sector and there are many resources available to assist traders in learning
and using technical analysis methods. Furthermore, algorithmic trading makes it possible to
automate technical analysis, allowing traders to implement trading plans based on technical
analysis without human intervention.
For this assignment, we use five indicators namely Moving Average, Rate of Change
(ROC), Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and
Stochastic, to analyze the price pattern of the stocks. In this regard, we have used these five
indicators to analyze the stock pattern of the company that we have selected. The companies we
have selected for analysis were Petronas chemical (PETCHEM), Panasonic Manufacturing Bhd,
Nestle Berhad, Apollo Food Holding Bhd and Axiata Group Berhad.