Technical Analysis
Disclaimer
This presentation is being issued solely for information purposes. This presentation does not contain all of the information
required by a party to evaluate the prospects of participating or utilizing the proposed financial products. Potential participants
must conduct their own investigations and analysis and rely on the results of such investigation in coming up with a decision to
participate in any of the proposed financial products. The data and information presented and included in this presentation do
not purport to be complete and exhaustive. They have not been independently verified as to their veracity and timeliness. BDO
Nomura Securities, Inc. (formerly PCIB Securities, Inc.), including their respective allied entities, as well as their respective
agents, advisers, directors, officers, employees or representatives make no warranty or representation, express or implied as
to the accuracy or completeness of the contents of the presentation. This disclaimer extends to any statements, opinions or
conclusions contained in, or any omissions from, the presentation or in respect or in respect of written or oral communications
transmitted or otherwise made available to the prospective participants, and no representation or warranty is made in respect
of any such statements, opinions or conclusions. The contents of this presentation are strictly private and confidential.
Accordingly, except with the prior written consent of BDO Nomura Securities, Inc. (formerly PCIB Securities, Inc.), the
information contained in the presentation must be held in complete confidence.
Fundamental analysis and Technical analysis
Fundamental analysis
An approach by which the intrinsic
value of a stock is derived from the
firms or economic fundamentals
Technical analysis
Technical analysis is a security
analysis methodology for forecasting
the direction of prices through the
study of past prices and volume.
Economic environment forecast
Top-down
approach
Promising industries forecast
Choose promising securities
Bottom-up
approach
Investigative analysis of individual firms
Premises of technical analysis
Charts factor in all market elements
Price movements form trends
History repeats itself
Candlestick chart
Create a candlestick chart with the daily opening, high, low, and closing prices.
Opening
High
Close of
morning
trading
Start of
afternoon
trading
Closing
Change in
share price
High
Close
Open
Low
Low
12:00 13:30
9:30
When the close is higher
than the open (positive line)
Close
Open
Change in
share price
High
Candlestick
chart
15:30
When the close is lower
than the open (negative line)
When the open and low, and
close and high are the same
High
close
Open
Close = high
Open
Close
Open = low
Low
Low
Technical analysis
(Peso)
9,000
Moving averages
See the leveling of daily movement and trends in share prices.
Can calculate the average cost for market participants.
8,000
Dead cross
Golden cross
Compares short-term and long-term moving average lines and refers
to when the short-term passes up through the long-term.
7,000
Dead cross
Conversely, when the short-term passes down through the long-term.
6,000
Golden cross
Dead cross
5,000
13-week average
4,000
26-week average
3,000
Golden cross
Golden cross
2,000
1
11
11
11
Example of Company A (weekly chart)
11
(Months)
Investment information
Investing in stocks is investing in information.
(1) Analysts
Mainly conduct fundamental analysis of firms, project the results of
individual firms, and offer investment decisions (ratings).
Analyze what condition the economy is currently in and where it is
(2) Economists
heading in the future.
Develop and recommend investment strategies taking into
(3) Strategists
consideration the investment environment around what markets
are good and what markets to avoid.
