Technical analysis of the stock market and its usefulness in making investment decisions in the secondary market

Abstract

This article describes the usefulness of technical analysis in stock market investments. With the 35 stocks of the Índice de Precios y Cotizaciones of the Mexican Stock Ex-change, the support and resistance levels of closing prices from the last day of operations show the probability of making profits and their magnitudes, as well as risks. The main idea is to find out the parameters for measuring benefits and losses .Graphic  and statistical analyses are only guidelines and do not guarantee results, because some fundamental factors could modify prices in dramatic ways.