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Your answer is straightforward, no twists or turns
Answer: Financial analysis is what drives stocks – End
The role of technical analysis is to find a great position to enter at the right price after the staging area is over
Below is a confirmation example
Look for all distressed and loss-making companies. Over the long term, you’ll find that their stocks don’t achieve significant investment gains. They are all speculation by groups of individuals.
Respected investment institutions and funds do not pay attention to companies in financial distress and therefore do not inject money into them. As a result, these stocks remain stagnant for life.
What happens is that a group of 20-30 million people agree with each other and act (in the stock market they call it a gym) and charge people a high price and then have the stock crash at lightning speed, which doesn’t give you a chance to sell at even a small loss.
example
*Qalaa shares (more debt than the company itself would like, despite many subscriptions, debt swaps, etc.)
* Speed ​​Medical (hasn’t made a penny since its establishment – recently they wanted to underwrite it but were rejected by the regulator)
* Egypts for Investment (failed company – gym currently in operation)
* Cairo Oils and Soap (a failed company that historically hasn’t been profitable for a year – I think gyms will be open soon)
* Advanced Healthcare (no company at all – we are all concerned about how recent disasters have left people stuck with ridiculous prices)
There are many examples of this
*This includes Nangu Cement (they never said they were profitable – but we will exclude Nangu because of the new news I received recently – the debt has been resolved. We will see if they will start making profits or in two years they will be back in debt)
Conclusion: Institutions and investment funds will not pay attention to these stocks and will not inject money into them. In fact, it’s institutional money that’s driving share price increases – so these stocks will never go up except through the market.
# But my personal opinion (because we focus on technical analysis – and we don’t care if the company wins or loses – we care about getting in, out and out as quickly as possible)