Fundamental and technical analysis WSE-EKN-AFT

The course "Fundamental and Technical Analysis" aims to provide students with a comprehensive understanding of two key methods used to analyze financial markets and securities—fundamental analysis and technical analysis—employed to assess the profitability of investments, particularly in stocks, bonds, and other financial instruments. Throughout the course, students will explore the theoretical foundations, assumptions, objectives, tools, and limitations of both approaches.
In the section devoted to fundamental analysis, students will learn how to assess the financial condition of companies and entire economic sectors based on macroeconomic and microeconomic data, financial statements, financial ratios, as well as market and non-market factors. Emphasis will be placed on evaluating the intrinsic value of financial instruments, valuation methods, financial reporting analysis, and forecasting trends in the economy and markets.
In contrast, technical analysis will be presented as a method of evaluating price movements of financial instruments through charts, price patterns, technical indicators, and trend theories. Students will learn how to identify buy and sell signals, apply chart-based investment strategies, and recognize key support and resistance levels.
Classes will be conducted in the form of a seminar. Students will analyze real market data, interpret charts, prepare analytical reports, and simulate investment decision-making based on the acquired knowledge.

Course Objectives:
• To introduce students to the core principles and significance of fundamental and technical analysis in the investment decision-making process.
• To develop skills in interpreting financial and economic data for the purpose of assessing the value of securities.
• To enhance the ability to use analytical tools to identify investment signals and market trends.
• To cultivate decision-making competencies based on the analysis of historical and current data.
• To prepare students for independent and responsible analytical work in the fields of finance, investment advisory, and portfolio management.

Key Topics:
I. Introduction to Financial Market Analysis
• Characteristics of financial markets and investment instruments
• The role of information and investor expectations
• Market efficiency and its implications for analysis
II. Fundamental Analysis
• The essence and objectives of fundamental analysis
• Macroeconomic environment analysis (GDP, inflation, interest rates, unemployment)
• Sector and industry analysis (industry life cycle, competition, entry barriers)
• Financial statement analysis:
o analysis of the balance sheet, income statement, and cash flow statement
o financial ratios: profitability, liquidity, debt, and activity indicators
• Company valuation:
o discounted cash flow method (DCF)
o market multiples (e.g., P/E, P/BV)
• Formulating investment recommendations based on fundamental analysis
III. Technical Analysis
• Assumptions and philosophy of technical analysis
• Types of charts (line, bar, candlestick) and their interpretation
• Price patterns (reversal and continuation formations)
• Dow Theory and Elliott Wave Theory
• Market trends: identification, trend lines, price channels
• Support and resistance levels, price gaps
• Technical indicators and oscillators (RSI, MACD, moving averages, Bollinger Bands)
• Investment strategies based on technical analysis
• Volume analysis and its role in confirming signals
IV. Integrated Approach to Market Analysis
• Comparison and complementarity of fundamental and technical analysis
• Market situation analysis using both approaches
• Building investment strategies based on integrated analysis
V. Practical Applications and Simulations
• Working with real market data (e.g., from financial platforms and databases)
• Practical exercises using analytical tools and software (e.g., Excel, trading platforms)
• Simulation of investment decisions and portfolio building
• Evaluating the effectiveness of applied strategies