There are 2 types of analysis that are predominantly used to
find and predict the fair price of any share.
Technical analysis = This analysis usually focuses on the
performance of the share based on the behaviour of its historical
share price without the analysis of the underlying business and
financial situation. It usually involves the use of charts to
discover patterns arising from historical share prices and hence
tries to predict future share price movements.
Fundamental analysis = This usually focuses on the company's
underlying business and financial situation. It will incorporate
analysis of annual reports, analysis of the company's sector and
the overall strength of the economy, when ascertaining whether a
share price is fair or not.
If one is to 'play' the stock market using the technical analysis,
is it haram?
