Technical Analysis is a method of evaluating securities by analyzing statistics generated by

market activity, such as past prices and volume. Technical analysts do not attempt to measure a
security's intrinsic value, but instead use charts and other tools to identify patterns that can
suggest future activity.
NATIONAL TEA COMAPANY:
In order to perform technical analysis, we have 2 years price and volume data of National Tea
Company and the technical chart of the company is presented below:

Resistance Level
@737

Technical Chart

Resistance Level
@691

Support Level
@632

Support and Resistance level:

From the above chart, it is seen that National Tea Company is currently traded at the price of
BDT 632.9, which is lower price of last 2 years and support level. However, Resistance level 1
for the NTC is BDT 691 and Resistance level 2 is BDT 737.
RSI:
Technically, the stock is trading at lucrative price of buying having 14 days RSI of 43 only. Note
that RSI is ranges from 0 to 100 where RSI 70+ denotes the overbought situation of stock and
RSI below 30 denotes the oversold situation. NTC is now at oversold situation and indicates buy
signal from technical view point.

MACD:
Moving Average Convergence Divergence (or MACD) is a trend-following momentum
indicator that shows the relationship between two moving averages of prices. The MACD is
calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day

EMA. A nine-day EMA of the MACD, called the "signal line", is then plotted on top of the
MACD, functioning as a trigger for buy and sell signals.

Signal

MACD

The red line denotes the signal line and blue line is the Moving Average Convergence
Divergence (MACD). Since the MACD line has crossed the signal from value, there is bullish
trend. Generally, When the MACD falls below the signal line, it is a bearish signal, which
indicates that it may be time to sell. Conversely, when the MACD rises above the signal line,
the indicator gives a bullish signal, which suggests that the price of the asset is likely to
experience upward momentum.