It is true that technical analysis helps you predict how the stock price is going to move and what price levels it may touch. However, the price is still very closely linked to the intrinsic value of the stock. So, technical analysis only helps determine the direction and the extent of the stock price movement.
For prices to move in a particular direction, they must first start from somewhere. Let’s say the price of a stock is Rs 150 right now. Your technical analysis suggests that it will go up to say, Rs 175. But where did the current price of Rs 150 come from? There is a method for calculating it.
Let’s understand with the example of a house you are buying. The key purpose of this apartment is for giving it out on rent. How much would you be willing to pay for it?