Technical analysis as a forecasting method price movements of financial instruments on the example of Sanok Rubber Company S.A.

Abstract

The capital market is a regulated market which constitutes an important element of the country's economy. It is used to purchase and sell securities, including stocks and bonds of various listed companies. For trading participants, an important element of making investment decisions is forecasting price movements so as to make the best decision based on the information obtained. The aim of the article was to investigate the application of the basic tools of technical analysis based on the price charts of Sanok Rubber Company S.A. Interpretation of the studied candlestick charts showed that a thorough technical analysis allows searching for favorable opportunities to conclude a purchase or sale transaction, as well as limiting the risk of losing capital related to trading on the capital market.