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:

Technical Chart

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

Resistance Level @737

Resistance Level @691

Support Level @632

MACD, functioning as a trigger for buy and sell signals.

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. 

Signal Line

MACD Line