How to do Trend Analysis Different Types of Market Trend Strategies

Analysts at Axis Direct project strong revenue visibility over the next 2\u20133 years and expect revenue to grow at a CAGR of 69% during FY26\u201327. Info Systems are gearing up to deliver strong topline growth through capacity expansion and the execution of government contracts. Smallcap stocks have seen a remarkable expansion in market value, jumping from Rs. 17 lakh crore in 2017 to Rs. 92 lakh crore by the end of 2024, according to Bajaj Finserv AMC. India\u2019s small caps are once again in the news \u2013 this time, not for higher volatility or FII sell-offs. The company has guided a capex of Rs 1,16,880 crore for this expansion by FY30. The company gets 50% of its revenue from the UK and Europe, 30% from the Americas region, and the remaining 17% from the rest of the world.

• Metro will manage Clarks’ e-commerce channels in India, including its website.
• \u201cThe bomb went through it like butter,\u201d Trump said in an interview about the US strike on Fordow, Iran\u2019s nuclear site.
• For example, a stock might close at $5.00 and open at $7.00 after positive earnings or other news.

Is the Stock Market in an Uptrend or Downtrend?

Deep discounts, strategic hires, and well-placed manufacturing units have helped its market cap jump 84% in four years, while rivals like Asian Paints, Berger, and Kansai Nerolac saw a 23% decline. ICICI Securities reiterates its \u2018Buy\u2019 rating on this utility company, with a target price of Rs 245, a 29.2% upside. In FY25, revenue rose 6.6%, while net profit grew 25.7% to Rs 12,499.8 crore, driven by higher gas and polymer production volumes. Management aims to improve profit margins by approximately 100 basis points each year, reaching a target of around 17\u201319% in three years. Analysts believe the UK-India free trade agreement (FTA) will reduce import duties and boost the company\u2019s profitability on UK exports.

The acquisition of Caresoft\u2019s Global Engineering Solutions business is expected to close by the end of Q1, which is expected to boost consolidated revenue by 4% starting Q2. The management aims to achieve a profit of Rs 4,000\u20134,500 crore from the gas business in FY26, down from Rs 4,833 crore in FY25. This is due to the shutdown of its Kanpur fertiliser plant and the delay in commissioning the Durgapur-Haldia and Dhamra-Haldia pipelines.

🎓 Pro Level Charting Skills & Strategies for Investors and Traders!

These sectors are closely tied to India\u2019s infrastructure and consumption cycles. Land acquisition is a major issue, especially at Neyveli, where lignite output is expected to be only 3 million tonnes in FY26 against a capacity of 7 million tonnes. Power plants are often directed by state load dispatch centres to reduce their generation, especially during the daytime when solar generation is high, which affects their revenue. The Ghatampur unit, despite generating revenue, reported losses as it could not run at full capacity. Projects like the Pachwara coal block and the lignite-to-ethanol plant are also delayed because of pending approvals and re-tendering.

Since stock prices can be quite volatile in the short term, they usually do not move in a straight line. Investors must take into account a specified timeframe to interpret stock price swings as a trend. In the stock market, an uptrend is any stock price continuing to make new highs over time. The length of the price move defines stock market trend analysis whether the uptrend or downtrend is a short, medium, or long-term trend. Also, do not forget short-term trends develop into medium-term trends, which can develop into long-term trends. Not that you understand stock trends using moving averages, but you may want to learn how to draw trendlines.

Example 2: Trend Following Strategy Using Moving Averages

Alongside, 15 companies are scheduled to list on the stock exchanges this week, following six listings in the previous week. The analyst projects mid-single-digit growth for the domestic tractor segment in FY26, driven by new product launches in both the construction equipment and tractor segments. They expect exports to grow by 20\u201325% in FY26 and estimate revenue and net profit will rise by 10.5% and 16%, respectively, over FY26\u201327.

📆 Date: Aug 2-3, 2025🕛 Time: 8:30-11:30 AM EST📍 Venue: OnlineInstructor: Dheeraj Vaidya, CFA, FRM

At Taking Forward, we are committed to helping you enhance your trading skills with expert guidance and resources. Trend analysis is the study of data to identify patterns or trends that can be used to make investment decisions. This type of analysis is typically used to analyze the performance of a particular security, such as a stock or bond, over a given period of time. By studying trends in data, investors can make informed decisions about whether to buy, sell, or hold a particular security.

Technical indicators are a statistical form of technical analysis where technicians apply various mathematical formulas to prices and volumes. The most common technical indicators are moving averages, which smooth price data to help make it easier to spot trends. More complex technical indicators include the moving average convergence divergence (MACD), which looks at the interplay between several moving averages. Many trading systems are based on technical indicators since they can be quantitatively calculated.

Volume may decline as the pattern develops and spring back once the price breaks above (in the case of a head and shoulders bottom) or below (in the case of a head and shoulders top) the trendline. An uptrend interrupted by a head and shoulders top pattern may experience a trend reversal, resulting in a downtrend. Conversely, a downtrend that results in a head and shoulders bottom (or an inverse head and shoulders) will likely experience a trend reversal to the upside. While a price pattern forms, there is no way to tell if the trend will continue or reverse. Careful attention must be placed on the trendlines used to draw the price pattern and whether the price breaks above or below the continuation zone. Technical analysts typically recommend assuming a trend will continue until it is confirmed that it has reversed.

How to Use Technical Analysis

• Critics of trend analysis, and technical trading in general, argue that markets are efficient, and already price in all available information.
• Conversely, a downtrend that results in a head and shoulders bottom (or an inverse head and shoulders) will likely experience a trend reversal to the upside.
• \u201cThe sharp decline in largecaps points to a shift among investors toward higher-growth, though riskier, segments like mid and small caps.
• Below, you can see over the last three years, the S&P 500 index has experienced a short-term downtrend (the Covid Crash), a long-term uptrend (the Covid Recovery), and a medium-term down-trend in 2022.

In the whirlwind of market activity, Beyond Meat Inc. (BYND) has been a standout. On February 27th, BYND stock closed at $7.52, only to surge the following day, surpassing the $12 mark. This upswing was fueled by announcements of sweeping cost-cutting measures and a fourth-quarter earnings call that boosted investor confidence. A rising long-term trend causes the intermediate trend to have larger rallies and smaller retracements, and the short-term trend causes the intermediate-term trend to ebb and flow. A falling long-term trend causes the intermediate-term trend to have smaller rallies and larger retracements, while the short-term trend, again, causes the intermediate-term trend to ebb and flow. For instance, the chart below shows that the trend is upward whenever the price remains within the upper Bollinger Bands that are +1 SD and +2 SD from the mean.

KPIT in its latest update, notes that Europe is looking positive while the US and Asia are somewhat uncertain. This is a stark contrast to Q4, where revenue from Asia grew by 73% and the US grew by 4% YoY, while declining by 6% YoY in Europe. On June 16, the company\u2019s board approved issuing up to 17 crore fully convertible warrants to promoter group entities at Rs 132 per warrant, around 2.6% above SEBI\u2019s floor price.

How to Spot Key Stock Chart Patterns

While the RSI is perhaps better known for spotting overbought and oversold conditions, it also is also used to identify trend reversal points. Throughout both trends, the moving averages also provide dynamic support and resistance, as the price tests these lines during retracements before proceeding. Trend analysis is the process of looking at current trends in order to predict future ones and is considered a form of comparative analysis. Though a trend analysis may involve a large amount of data, there is no guarantee that the results will be correct. Sales and cost information of the organization’s profit and loss statement can be arranged on a horizontal line for multiple periods and examine trends and data inconsistencies. For instance, take the example of a sudden spike in the expenses in a particular quarter followed by a sharp decline in the next period, which is an indicator of expenses booked twice in the first quarter.

In this expert guide, we’ll explore the key characteristics of uptrends, downtrends, and consolidations and delve into the factors that lead to them. Trend analysis can have some potential disadvantages as a tool for making investment decisions. One of these disadvantages is that the accuracy of the analysis depends on the quality of the data being used. If the data is incomplete, inaccurate, or otherwise flawed, the analysis may be misleading or inaccurate. Symmetrical triangles occur when two trend lines converge toward each other and signal only that a breakout is likely to occur—there is no upward or downward trend.

Categorised in: Forex Trading

This post was written by vladeta