What is meant by a technically strong stock or a technically strong market?

I understand what a fundamentally strong stock is, but what is a technically strong stock/ market? Does it mean a stock or market that adheres to chart patterns, does not give false signals etc? Because whenever I hear 'technical', I think 'charts'.


2 Answers 2


A technically strong stock or market is simply a stock or market which is up-trending and has been up-trending for a while.

Just as a fundamentally strong stock is one with good fundamentals (a stock that is healthy and making higher profits year after year and continually improving), a technically strong stock has a healthy uptrend that continues to go up and up. Apple was technically strong until it hit $700 (its price stayed above the 200 day MA for a long period until after it hit $700, then broke down through the 200 day MA shortly after - the uptrend was over).

I will usually buy stocks which are both fundamentally and technically strong, as a technically strong stock will generally stay technically strong longer if it also has strong and good fundamentals.


"Technically strong" means the market is trending upward. Fundamentals deal with value. Technicals deal with trend.

However there is no agreed upon way to determine technical strength. Moving averages and support/resistance seem fairly reliable however there are far more esoteric technical indicators whose value remains up for debate.

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