Technical Analysis Progress Report - The Lyon's Holding

Résumé du document

To start, we were always attracted to finance and more precisely to the stock market but we did not have the chance to study it in school. That is why we think it is interesting undertake a technical analysis to understand more about the market behavior. We choose to focus on four different sectors namely Electronic, Informatics, Pharmaceutical industry and Banking to diversify and to limit the risks. We think that these sectors are significant for us and are evolving during the speculating period. We did our research on yahoo.finance.com, nyse.com, Wall Street journal, financial time, afterward we analyzed it with the Paritech program. For a follow up we used the French Internet site boursorama.com which gave us information and enabled us to conduct a technical analysis.

Extraits

[...] This is possible because the major trend still remains an uptrend. This share should be look attentively in the future in order to maybe trade again with it. Lilly Symbol: LLY Number of shares: 18500 Stop-loss price: $50 Buying Date: 13/12/2005 Buying price: $54 (opening price) Selling Date: 10/01/2004 Selling price: $ 58.58 (opening price) Evolution: INITIAL ANALYSIS: The value of the stock has crossed the medium Bollinger band as well as the moving average, which were the signs that we were expecting as a confirmation of an uptrend. [...]

[...] Technical Analysis Progress Report - The Lyon's Holding CONTENTS This progress report is an overall vision of our work since the beginning of the hedge fund simulation. INTRODUCTION NON PROFITABLE OPERATIONS ANTHEM Inc. INITIAL ANALYSIS / FEEDBACK ANALYSIS DIAGNOSTIC PRODUCTS INITIAL ANALYSIS / FEEDBACK ANALYSIS PROFITABLE TRADES GANNET Co INITIAL ANALYSIS / FEEDBACK ANALYSIS SEQUA CORP INITIAL ANALYSIS / FEEDBACK ANALYSIS AMERICAN ELECTRIC POWER Co INITIAL ANALYSIS / FEEDBACK ANALYSIS DEERE & Co INITIAL ANALYSIS / FEEDBACK ANALYSIS D&B Corporation INITIAL ANALYSIS / FEEDBACK ANALYSIS DIAMOND OFFSHORE DRILLING INITIAL ANALYSIS / FEEDBACK ANALYSIS GILETTE INITIAL ANALYSIS / FEEDBACK ANALYSIS APPLE COMPUTER INC. [...]

[...] We can know use the main indicators used by the traders. In the same time, analysing charts, we begin to measure the effects of the indicators and to choose the indicators we prefers. For example, by the end of the semester we use a lot the Bollinger band which we think is a simple, useful and valuable tool. To add, working in group was really constructive. Each member learnt from each others and we separate efficiently the work to avoid waste of time. [...]

[...] Moreover, we bought too much shares compare to our others shares. M-Sys Flash disk Pioneers ltd Symbol: FLSH Number of shares: Buying Date: 01/12/2005 Buying Price: $ 31.26 Selling Date: 10/01/2006 Selling price: $ 37 Evolution: Initial analysis: The share price follows an uptrend since July 2005. This is confirmed by the moving average. On December 1rst, the price bounce off the lower band and cross the 20 day average that means that the price line will target the upper band and so follow an uptrend. [...]

[...] Consider all of this we decide to buy November 10. Buying point INITIAL Analysis First, for the buying price point; looking at the Bollinger band, we can see that the price line cross below the lower 20 day average which warns a trend reversal to the upside. Moreover, we see a narrowing that is a sign that the market may initiate a new trend: an uptrend. The momentum confirms the uptrend with line above 0. And as the MACD line just crossed above the signal line, on October 30th, that means that there is a buy signal. [...]