Abstract

This paper deals with the technical analysis of The Coca-Cola Company (KO) shares. The first signal for the stock price movement was created on the basis of the intersections of moving averages, namely after intersecting the shorter average through the longer average. This signal signifies a drop in the share price. The same signal was generated after comparing the trend of the share price and the trend of the trading volumes. It is these particular trends that have a different direction. Consequently, this is an indicator for a decline in the share price. The last signal created a graphical pattern called symmetric bear triangle which also predicts a drop in the stock price. Only one indicator did not generate a signal for price increase or decrease, namely the RSI with a 14-day period. The examined data collection contains data from 2.1.2015 to 29.4.2020. At the same time, all presented results and predictions are based on the date of April 29, 2020. Finally, the use of the given indicators for different titles, assets or for different types of trade with different lengths is evaluated and proposed. The paper provides suggestions of measures for investors and speculators which should be applied before the start of the analysis.

Highlights

  • Considering the global predictions of the impending global crisis, the subject of stock market analysis is very topical

  • The valuation can be solved by both short positions and long positions directly on the share or by the respective option on the share. Another possibility is a speculation on a commodity, a currency pair, a precious metal etc. It important to be familiar with the mechanisms of the stock market during a crisis and at other times

  • Technical indicators were calculated from the data set using the above-mentioned mathematical apparatus

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Summary

Introduction

Considering the global predictions of the impending global crisis, the subject of stock market analysis is very topical. Should a greater or smaller financial crisis occur, it is almost certain that the stock values of most companies will fall by tens of percent. This is exactly the right time for both large and small investors or small speculators who can increase the value of their capital in this period of economic depression [1,2]. The valuation can be solved by both short positions and long positions directly on the share or by the respective option on the share Another possibility is a speculation on a commodity, a currency pair, a precious metal etc. It important to be familiar with the mechanisms of the stock market during a crisis and at other times

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