In this paper, I assess the empirical relation between analyst recommendation decisions and market technicals. Research shows market technicals have predictive content that leads to abnormal returns. Recent survey evidence, however, shows analysts' rank technical signals as having relatively little usefulness in forming their recommendations, leading them to underweight the information content of technical signals. I find lagged positive stock price trends are associated with a greater likelihood of consensus recommendation upgrade. Furthermore, I show market technicals enhance the investment value of consensus recommendations. Overall, I demonstrate that market technicals are an important complement to analyst recommendations.

中文翻译：

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趋势是分析师的朋友：分析师的建议和市场技术

在本文中，我评估了分析师推荐决策与市场技术之间的经验关系。研究表明，市场技术人员具有可导致异常收益的预测内容。但是，最近的调查证据表明，分析师对技术信号的评级对形成建议的用处不大，导致他们轻视了技术信号的信息内容。我发现滞后的积极股价趋势与达成共识建议升级的可能性更大。此外，我展示了市场技术可以提高共识建议的投资价值。总体而言，我证明了市场技术是对分析师建议的重要补充。