Evaluation of the Share Price Movement: A Case Study of Insurance Group in Tehran Stock Exchange

The Stock Market is one of the main pillars of the financial market. Increasing the analytical power of capital market investors is one of the factors that play an effective role in the development of such a market. Many investors use technical analysis to make their trading decisions. In this study, the efficiency of buying stocks of insurance companies in Tehran Stock Exchange was examined by Technical Analysis which includes Stochastic Oscillator, Exponential Moving Average, and Hull Moving Average. Then, the study compares Technical Analysis with Buy and Hold Method. To do this, the trading positions that created based on daily periods for 14 insurance companies in Tehran Stock Exchange between 2017:3 and 2019:9 have been reviewed and compared with the Buy and Hold Method. Results indicate that the quarterly returns getting by Technical Method are positive in overall, and the number of trades with negative returns is less than the number of trades with positive returns. Similarly, the average return on a trade with a loss has always been lower than the average return with a profit. Moreover, the number of days with negative returns was less than the number of days with positive returns in all insurance companies. Findings show that using Technical Method was more profitable than the Buy and Hold Method in all companies which have been investigated.