Chapter 13: Fundamental and Technical Analysis

In this section

• 13.1 Methods of Equity Analysis
  • 13.1.1 Fundamental Analysis
    An in-depth exploration of fundamental analysis as a method for evaluating intrinsic stock value using financial statements, industry conditions, and macroeconomic indicators.
  • 13.1.2 Technical Analysis
    Technical Analysis is a method of evaluating securities by analyzing historical data primarily consisting of price and volume. This section explores the use of market price patterns and trends along with various technical indicators.
• 13.2 Fundamental Macroeconomic Analysis
  • 13.2.1 Economic Indicators
    Explore the impact of economic indicators such as GDP, inflation, and interest rates on corporate performance and equity valuations.
  • 13.2.2 Monetary and Fiscal Policies
    This section covers the influence of monetary and fiscal policies on economic variables, stock prices, and overall market dynamics.
• 13.3 Fundamental Industry Analysis
  • 13.3.1 Industry Life Cycle
    Explore the stages of an industry's life cycle: emergence, growth, maturity, and decline, and their implications for investment analysis.
  • 13.3.2 Competitive Landscape
    An in-depth analysis of the competitive landscape in an industry using Porter's Five Forces and understanding market structure dynamics and their impact on profitability and entry barriers.
  • 13.3.3 Regulatory Environment
    An examination of how industry-specific regulations affect corporate strategies and market potential.
• 13.4 Technical Analysis
  • 13.4.1 Chart Patterns
    An introduction to the chart patterns used in technical analysis, including head and shoulders, double tops, and triangles, and their implications for predicting price movements.
  • 13.4.2 Technical Indicators
    An in-depth exploration of technical indicators like Moving Averages and Relative Strength Index (RSI), their application, and significance in analyzing financial markets.
  • 13.4.3 Support and Resistance Levels
    Exploring the concepts of support and resistance levels as key price barriers within technical analysis, and their importance in predicting stock movement reversals or accelerations.
  • 13.4.4 Limitations of Technical Analysis
    Examine the inherent limitations of technical analysis, focusing on assumptions and biases that affect the reliability of trading decisions.