If the stock goes up from that price, it is considered to be overvalued. If the stock goes down, it is undervalued. Among other indicators, fundamental analysts study past records of assets, earnings, sales, products, management and markets to predict future trends. By assessing a firm's prospects, fundamentalists can evaluate whether a security is overvalued or undervalued. In contrast to fundamental analysis, technical analysis does not consider a corporation's financial data.
Technical analysts rely on price and volume movements of stocks.
Besides studying a corporation's financial data, they will also examine its industry and how the economy will affect the company's core business. Futures differ from options in that the holder of an option has a choice whether or not to exercise the option, but the parties involved in a futures contract are obligated to complete the transaction. A commodity exchange where futures contracts are traded.