Lesson 2: Introduction to Technical and Fundamental Analysis
Lesson 2 Exercise
Time Estimate 30 minutes
Exercise Summary: This week you'll practice charting the core of technical analysis. You'll use two different Web sites, Yahoo Finance! and Prophet Charts. Yahoo is much easier to use, but offers less options. Prophet Charts is probably more advanced than what most of you will want, but it's worth taking a look if you have the time. Research Yahoo, America Online, and iVillage or pick one or two stocks you prefer.
Instructions
- You'll start again at Yahoo! Finance's quote search engine. Enter the symbol for which you want a chart (use the symbol look up feature if you don't know it).
- When you get to the first page after putting in the symbol, click "Chart" in the More Information box.
- After looking up the symbol, click the appropriate company.
- At the top of the chart, you will see five selections:
- Basic
- Moving Average
- Technical Analysis
- IntraDay
- Detailed
- Click Moving Average. Has the stock you are looking at fallen below its 50-day support level? Its 200-day support level as well? Or, are there signs that it seems to be leveling off or maybe recovering from its lows?
- Compare this information to the fundamental information you collected during this week's field trip. Do you think you would want to buy this stock? If so, at what price would you want to buy it?
To start your chart, go to: http://finance.yahoo.com/p?v&k=pf_1
Optional Exercise - Prophet Charts If you want to try out a more advanced charting service, go to: http://www.prophetfinance.com/charts/pc.asp
While you are there, you'll see that you can: select five different chart styles, add trend lines, zoom into an area of the chart for a closer look, and compare it to numerous benchmarks of both the NASDAQ and NYSE.
Click "Power Features" at the top of the chart for a full explanation of the features that you can use.
