Fundamental Analysis | Technical Analysis |
Fundamental analysis refers to the analysis of investment alternatives by calculating the stock value using past and projected financial data. | Technical analysis is short term analysis of the investment alternatives by analyzing the price movement of security in past to predict future price movements |
In fundamental analysis data are gathered from financial statements such as income statement, cash flow statement etc. | In technical analysis data are gathered from the Charts, graphs etc such as NEPSE index. |
Stock is bought or investment is made on stock when price falls below intrinsic value. | According to the technical analysis the stock is bought when trader believes they can sell it on for a higher price. |
Fundamental analysis is Long-term approach. | Whereas technical analysis is short-term approach. |
In fundamental analysis looks backward as well as forward while analyzing making investment decision. | Technical analysis looks only backward while making investment decision. |