THEORY AND PRACTICE OF SECURITIES TRADING

 

Carry out fundamental analysis and technical analysis and reflect on finance lab simulation and trading.

Section A: Fundamental Analysis
Tesla stock share price had a 10-fold rise from Jan 2013 to June 2017. Investment analysts did not agree on the intrinsic value of Tesla stock. Please do research online and answer the following questions based on analysis of the company, its sector and the economy.

a. What were the arguments in favour of the high price of Tesla stock?
b. Why did some people argue that Tesla stock were in a bubble?
c. Do you think Tesla stock is currently overvalued, fairly valued or undervalued? Please explain.
Indicative word count: 1,600

Section B: Technical Analysis
Read the Chart. below. IWM had a substantial rise from 4th Oct 2011 to the end of March 2012. Use technical analysis tools that are available to you to find all bullish signals including indicators, price actions, chart patterns and candlestick patterns around 4th Oct 2011.

Chart . IWM Daily Price Candlestick Chart, RSI(14), and MACD(12,26,9) Chart Chart (Jun 2011-May 2012)

 

Sample Solution

ACED ESSAYS