BASING THE INVESTMENT DECISION ON TECHNICAL AND
FUNDAMENTAL ANALYSIS: CASE STUDY Cover Image

FUNDAMENTAREA DECIZIEI DE INVESTIȚIE PE BAZA ANALIZEI TEHNICE ȘI ANALIZEI FUNDAMENTALE: STUDIU DE CAZ
BASING THE INVESTMENT DECISION ON TECHNICAL AND FUNDAMENTAL ANALYSIS: CASE STUDY

Author(s): Dan-Pavel Matei
Subject(s): National Economy, Business Economy / Management, Methodology and research technology, Financial Markets
Published by: Fundatia Institutul de Studii Financiare
Keywords: technical indicators; stock market; financial analysis; intrinsic value; risk; investment behaviour;

Summary/Abstract: Financial analysis through its two pillars, technical and fundamental analysis, is a powerful and indispensable tool used to perform sound investment decisions. In this context, the aim of this paper was to determine the investment opportunity, i.e. to substantiate this decision, using technical analysis as well as fundamental analysis on the case of JP Morgan Chase & Co. The research methodology of this paper consisted of studying and interpreting five technical analysis indicators and twelve financial ratios of fundamental analysis. According to the technical analysis, I determined that the stock is undervalued and that there is a good opportunity to take a buy position in the immediate future. Indicators such as Bollinger Bands and Relative Strength Index, together with the identified chart formations, confirm that the stock is oversold, and respectively,undervalued. In support of this decision come fundamental analysis indicators, which attest to a good financial condition of the company. Thus, taking into account the investor's risk profile, the decision to buy should be taken consciously, within the limit of a maximum of10% of own funds.

  • Issue Year: 2/2022
  • Issue No: 2
  • Page Range: 35-51
  • Page Count: 17
  • Language: Romanian