Course target
Target ( English price target ) is in the exchange nature of the expected future stock price , the a value paper , due to its intrinsic value or a chart technical trend is to reach.
General
The price target is a forecast of the future performance of a share and not a target in the sense of a corporate goal . In the case of volatile effects such as the share, the future price development is particularly important. The share price target is the price that a share should achieve within a certain period of time. The investor , speculator or trader has an interest in knowing the profit or loss potential of his stock. This results from the comparison between the current market price and the projected price target.
detection
The course target is the result of a financial analysis and can also be part of investment advice . When determining the target price, forecasting techniques are to be used to determine a target price for a specific share. While the intrinsic value results from the fundamental analysis , the technical analysis tries to predict the price development - or at least its probability of occurrence . This is done with the help of Fibonacci retracements , trend lines , support lines or resistance lines. Technically, the target price is the last upper extreme value after a correction or the closest resistance in the trend . The result of the determination is a certain expected stock exchange price, which is called the target price.
In fact, the security will only achieve the price target if the analysis is based on correct assumptions and correct conclusions , if no significant analysis factors have changed in the meantime, if the other market participants use comparable evaluation criteria as the financial analyst and if the price is not influenced by stronger, e.g. B. market psychological factors are influenced in other ways .
Price targets are always subject to valuation uncertainties. This can be taken into account by specifying a price range instead of an exact price target. The time span in which the target price may be reached cannot be precisely forecast. Financial analysts therefore often forego specifying a time span, which reduces the informative value of a price target.
Individual evidence
- ↑ Ladis Konecny, Aktien und Börse , 2016, p. 90
- ↑ Thomas N. Bulkowski, Encyclopedia of Chart Patterns , 2006, p. 65
- ↑ Ladis Konecny, Aktien und Börse , 2016, p. 90
- ↑ Wieland Arlt, Risk and Money Management simplified , 2015, o. P.