VSTE
Littera Scripta

ISSN (online): 1805-9112

Research ArticleOpen access

Technical analysis of selected stock time series based on stock value screening

Jiří Sulek1

  1. Institute of Technology and Business in České Budějovice, Faculty of Corporate Strategy

Abstract

The paper deals with using stock value screening in order to identify companies suitable for long-term investments. The paper includes technical analysis of the company Intel Corporation (INTC), which was evaluated as a suitable company for long-term shareholding on the basis of stock value screening. The paper provides a theoretical background necessary for understanding and performance of stock value screening and technical analysis. The next chapter presents and specifies the individual parameters of screening and indicators of technical analysis as well as a systematic and logical description of the whole paper elaboration. Another part of the paper summarizes and presents the individual results of the stock value screening based on which two companies are evaluated as suitable, with detailed comments. Furthermore, it explains why the technical analysis is performed on Intel corporation. The performed technical analysis shows the growing trend of the share price growth; therefore, a recommendation is made for the investors not to postpone the purchase of the shares. All results of the technical analysis are summarized in a table with a relevant comments and explanations. A very interesting signal is created based on a long-term, specifically three-year support line, and on the creation of the so-called double bottom pattern. In the conclusion, general recommendations are made for investors.

Keywords:Damodaranrisk premiumcredit ratingrating agencyinvestor

References

  1. BAKER, S. R., N. BLOOM, and S. J. DAVIS, (2016). Measuring economic policy uncertainty. Quarterly Journal of Economics. 131, 1593–1636. https://doi.org/10.1093/qje/qjw024.
  2. BASAK, S. and A. PAVLOVA, (2016). Model of financialization of commodities. Journal of Finance. 71, 1511–1556. https://doi.org/10.1111/jofi.12408.
  3. CROWELL, B. W., Y. BOCK, and Z. LIU, (2016). Single-station automated detection of transient deformation in GPS time series with the relative strength index: A case study of Cascadian slow slip. Journal of Geophysical Research: Solid Earth. 121, 9077–9094. https://doi.org/10.1002/2016JB013542.
  4. FINVIZ, (2021). Financial visualisation. [2021–03–12]. https://finviz.com/screener.ashx?v=111&f=cap_largeover,fa_div_pos,fa_eps5years_o10,fa_pe_u2 5,fa_roe_o20,fa_sales5years_o5,sec_technology,sh_avgvol_o1000&ft=4
  5. FOTR, J. and I. SOUČEK, (2015). Tvorba a řízení portfolia projektů: jak optimalizovat, řídit a implementovat investiční a výzkumný program. Praha: Grada Publishing a. s. ISBN 9788024752754.
  6. FRÖMMEL, M. and K. LAMPAERT, (2016). Does frequency matter for intraday technical trading? Finance Research Letters. 18, 177–183.
  7. GARCÍA, F. D., F. GUIJARRO, J. OLIVER and R. TAMOŠIUNIENÉ (2018). Hybrid fuzzy neural network to predict price direction in the German DAX–30 index. Technological and Economic Development of Economy. 24(6), 2161–2178. https://doi.org/10.3846/tede.2018.6394.
  8. GLADIŠ, D., (2005). Naučte se investovat. Praha: Grada Publishing a. s. ISBN 9788024712055.
  9. GLADIŠ, D., (2015). Akciové investice. Praha: Grada Publishing a. s. ISBN 9788024753751.
  10. GRAHAM, B. and J. ZWEIG, (2007). Inteligentní investor. Praha: Grada Publishing a. s. ISBN 9788024717920.
  11. HONG, Z., H. YU, and J. YUXIANG, (2016). Modelling for forecasting of pattern recoqnition – based on comparison and analysis between U.S. stock market and Chinese stock markets. Proceedings of the 2016 International Conference on Applied Mathematics, Simulation and Modelling. ISSN: 2352–538X10.
  12. CHMIELEWSKI, L. J., M. JANOWICZ, and A. ORŁOWSKI, (2016). A Study on directionality in the Ulam square with the use of the Hough Transform. Conference: International Multi-Conference on Advances in Intelligent Systems and Computing. 403, 641–647. https://doi.org/10.1007/978–3–319–26227–7_60.
  13. KOHOUT,, (2010). Investiční strategie pro třetí tisíciletí. Praha: Grada Publishing a. s. ISBN 9788024733159.
  14. KOLKOVA, A., (2018). Indicators of technical analysis on the basis of moving averages as prognostic methods in the food industry. Journal of Competitiveness. 10, 102–119.
  15. MAREK, and B. ŠEDIVÁ, (2017). Optimization and Testing of RSI. Financial management of firms and financial institutions. Ostrava: VŠB-Technical University of Ostrava, Czech Republic. 530–537.
  16. MOREIRA, A. and T. MUIR, (2017). Volatility-Managed Portfolios. Journal of Finance. 72, 1611–1644. https://doi.org/10.1111/jofi.12513.
  17. REJNUŠ, O., (2016). Finanční trhy: učebnice s programem na generování cvičných testů. Praha: Grada Publishing a. s. ISBN 9788024758718.
  18. SHALINI, T., S. PRANAV, and S. UTKARSH, (2019). Picking buy-sell signals: A practitioner’s perspective on key technical indicators for selected Indian firms. Studies in Business and Economics. 14, 205–219. https://doi.org/10.2478/sbe–2019–0054.
  19. SHILLER, R. J., (2010) Investiční horečka: iracionální nadšení na kapitálových trzích. Praha: Grada Publishing a. s. ISBN 9788024724829.
  20. SOBREIRO, V. A., T.R. COSTA., R. NAZÁRIO, J. SILVA, E. MOREIRA, M. FILHO, M. KIMURA and A. Z. J. HERBERT, (2016). The profitability of moving average trading rules in BRICS and emerging stock
  21. markets. North American Journal of Economics and Finance. 38, 86–101. https://doi.org/10.1016/j.najef.(2016).08.003.
  22. SOJKA, Z. and DOSTÁL, (2008). Elliottovy vlny. Brno: Tribun EU. ISBN 9788073996307.
  23. STIBOR, M. et al., (2011). FOREX - jak zbohatnout a nekrást: obchodování na měnových trzích. Praha: Grada Publishing a. s. ISBN 9788024737393.
  24. STRATIMIROVIC, D., D. SARVAN, V. MILJKOVIĆ and S. BLESIĆ, (2018). Analysis of cyclical behavior in time series of stock market returns. Communications in Nonlinear Science and Numerical Simulation. 54, 21–33. https://doi.org/10.1016/j.cnsns.2017.05.009.
  25. ŠTÝBR, D., KLEPETKO, ONDRÁČKOVÁ, (2011). Začínáme investovat a obchodovat na kapitálových trzích. Praha: Grada Publishing a. s. ISBN 9788024736488