Aspects of fundamental and technical analysis on the example of CD Projekt

Abstract

Aim. The aim of the article is to present the concept of fundamental analysis, based on the monitoring of economic events affecting the areas of a given company, as well as a technical analysis involving a study of the price behaviour and market moods in relation to stock market charts, based on the example of CD Projekt Capital Group, a Polish producer and distributor of video games.

Method. The article is based on the analysis and verification of data from the literature on the subject, information provided by the media, and stock market charts available on online platforms.

Results and conclusions. CD Projekt's fundamental analysis showed the impact of the company's actions on the stock market. Investors, following the premieres of long-awaited games, are more likely to buy shares, knowing that the company is also profit-oriented. With the premiere delayed, many investors sold the stock (quotes fell 7% after the news was announced). Technical analysis does not require systematic monitoring of events, although it is based on gaining knowledge in the field of observing stock market charts and using tools for interpreting signals generated by market moods.

Cognitive value. The article presents examples of events resulting from a fundamental analysis and their consequences in the exchange rate, as well as an introduction to the topic of technical analysis and the possibilities offered by the tools used in it.