Technical analysis studies price and volume, but company events can move a share price in ways no chart can anticipate. Two of the most important are earnings announcements and ex-dividend dates.
Earnings announcements
Listed companies in the US report results every quarter. The figures are compared with analysts' expectations, such as the consensus estimate for earnings per share (EPS). A result or outlook that differs from expectations can lead to a large price gap when trading opens.
- Price gaps can skip past levels that looked important on the chart.
- Volatility often rises in the days around the announcement.
- Technical patterns formed just before an announcement are therefore less reliable.
The ex-dividend date
A company that pays a dividend sets an ex-dividend date. Shares bought on or after that date do not receive the upcoming dividend. As a result, the share price usually opens lower on the ex-dividend date by roughly the amount of the dividend.
This fall is a mechanical adjustment, not a sign of technical weakness. Reading it as a breakdown can lead to the wrong conclusion.
How NBORSA shows these events
NBORSA displays the next earnings date, the EPS estimate and dividend dates on every stock, with short notes explaining how they can affect technical analysis. These dates provide context; they are not recommendations.
This article is for educational purposes only and does not constitute investment advice.