Fundamental analysis

Fundamental analysis is aimed to provide a more accurate portrait as possible of a company and to assess its prospects for long-term.

This requires taking into account the financial results of the company and its ability to generate profits but also taking into account its economic. Some macroeconomic parameters such as the cyclical nature of industry, the evolution of the exchange rates, the inflation rates or the interest rates must also be taken into account.

Fundamental analysis allows you to compare companies with similar profiles and determine the best investment strategies.

The fundamental analysis is relevant for investments in the medium to long term.

Technical analysis

The aim of the analysis technique is to forecast the future direction of prices through the study of past market data.

The technical analysis is only based on the study of past prices and volumes using graphs and mathematics.

Unlike fundamental analysis, technical analysis is based on the assumption that all information related to the company are already incorporated into the price.

The technical analysis is relevant for investments in the short term.

Note : Although giving good results, technical analysis does not pretend to be an exact science.