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What is Technical Analysis in a Nutshell?

Technical Analysis and Key Indicators Technical analysis is a method used to help determine the direction of future price movements based on past price movements. To achieve accurate evaluation in this analysis method, certain indicators must be closely monitored.  The most commonly used indicators in technical analysis include the exponential moving average, MACD, RSI, Stochastic, and Stochastic RSI. Moving averages crossing each other or being above or below certain levels can be interpreted as buy or sell signals in technical analysis. While RSI and Stochastic determine overbought and oversold zones, MACD explains the direction of the price movement trend. When a stock price is above its 9-, 21-, 50-, and 200-day exponential moving averages, it indicates that the stock is in an upward movement and hasn't given a sell signal. Similarly, a MACD above zero can be interpreted as a continuation of an upward movement. The RSI indicator being below 70 and the Stochastic RSI being bel...
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NVIDIA intrinsic value analysis: AI dominance meets valuation reality

NVIDIA's current price of $176.67 sits precariously between competing narratives—explosive AI growth justifying premium valuations versus cyclical semiconductor dynamics suggesting caution. The intrinsic value analysis reveals a stock fairly valued to slightly overvalued, with strong technical support around $169-170 offering a potential entry point for additional shares, though significant downside risks remain . Based on comprehensive financial modeling, NVIDIA's intrinsic value ranges from $130-180 per share , with the current price near the upper end of this range. Multiple valuation approaches suggest limited upside at current levels, while the wide analyst target spread ($100-$250) reflects fundamental uncertainty about AI demand sustainability and competitive dynamics. NVDA — Intrinsic Value Snapshot & Cash-Flow Waterfall As of 2025-09-20 • price ref: $176.67 (user input) • figures sourced from NVIDIA IR + Yahoo Finance....

Understanding ROI in Finance and Using Logarithms to Calculate ROI

Investing in the stock market can be both exciting and daunting. One of the key metrics investors use to evaluate the success of their investments is the Return on Investment (ROI). Additionally, understanding logarithms can provide deeper insights into financial growth and decay processes. In this blog post, we will explore the basics of calculating ROI, both in its simple form and using logarithms, and discuss the importance of natural logarithms in finance. Whether you're a seasoned investor or just starting, grasping these concepts can help you make more informed decisions and better understand the performance of your investments. Let's dive into the details.

The 'Alpha' Concept in Investments

In investments, "alpha" is a measure of an investment's performance relative to a benchmark index. It represents the excess return of an investment compared to the return of the benchmark index. Essentially, alpha indicates how much an investment has outperformed or underperformed the market, adjusted for risk. Types of Alphas Jensen's Alpha : Definition : Jensen's alpha, named after Michael Jensen, measures the risk-adjusted performance of a portfolio. It is derived from the Capital Asset Pricing Model (CAPM). Significance : Positive Jensen's alpha indicates that the portfolio has outperformed the market after adjusting for risk. Negative Jensen's alpha suggests underperformance. Treynor-Black Alpha : Definition : The Treynor-Black model focuses on construc...