Technical Analysis for laymen

With the COVID-19 situation showing little to no signs of abating anytime soon, home offices, online classes, and webinars are fast becoming part of ‘the new normal’. Ever-dedicated to carve out opportunities from threats, KASB Securities launched the KASB Varsity initiative not too long ago, which at the time of this article being written, boasts a 1,500-strong student body on an internet-based virtual campus.

The latest in KASB Varsity’s endeavors to promote financial literacy among the Pakistani youth was a webinar co-hosted by Chairman KASB Securities, Mr. Ali Farid Khwaja and guest speaker, Mr. Ehtesham Khan (Founder, Robocap) on the basics of Technical Analysis and its relevance in the Pakistani market(https://kasb.blog/?p=3259).

Throughout the lecture, Mr. Ehtesham Khan’s ability to communicate to the audience in layman terms almost belied his wealth of experience and advanced credentials in the fields of Portfolio Management and Technical Analysis. The discussion was predominantly based off of actual examples from several publicly traded Pakistani companies rather than textbook theory, which helped liven up the session, and kept it interactive.

Mr. Khan reiterated the importance of being able to accurately determine the general direction of the market quite a few times, and stated that sound Technical Analysis, coupled with a keen knowledge of historical trends and market outlook, is a key enabler for consistently making better investment decisions. Another key takeaway from Mr. Khan’s talk was the concept of determining the recommended buy and sell points by analyzing the long-term and short-term moving averages, which was another in a series of surprisingly simplistic Technical Analysis methods to potentially help generate improved returns.

In an answer to a question towards the end of the session, Mr. Khan said that despite the overall bearish trend in the Pakistani market over recent years, Technical Analysis tools such as Support Line and Resistance Line break-points can help identify buy/sell signals, and eventually make more profitable trades. As the session came to its conclusion, Mr. Khan warned the listeners against the potential harms of letting unverified and irresponsibly published literature drive their investment decisions, instead prescribing his own list of further readings on the subject of Technical Analysis.     

Leave a comment

Your email address will not be published. Required fields are marked *