Complementarity of Fundamental and Technical Analysis of JSE Listed Stocks: An Empirical Appraisal
Extant studies on fundamental and technical analysis frequently focus on analysing each of the valuation techniques independently. This study constructs a hybrid of the two to determine whether this model can have a superior explanatory power to models based on each of the valuation techniques in isolation. The results confirm the complementarity of fundamental and technical analysis with the hybrid model delivering superior performance. Further, fundamental variables that play a significant role in explaining stock price movements of JSE listed stocks are noted to be the book value, cash flow, earnings and dividends per share.