PROTOCOLS OF TECHNICAL ANALYSIS IN DETERMINING THE UNDERVALUATION FROM A LOW PRICE

Financial markets are an essential component of the economic environment, and their trends are often studied by various interest groups. Although it is not possible to predict with complete certainty the trends in financial markets, owing to the development of science and technology today there are analytical protocols and tools that can quantify these trends while respecting certain limits and a certain level of risk. The authors investigate stock price movements of the group Đuro Đaković d.d. applying reliable indicators of technical analysis, they draw conclusions on future trends and future price levels in the short, long and medium term, with the aim of applying results to decision-making in investment processes. In each of the observed periods, the authors notice the presence of a negative trend. Such results are surprising given a relatively favorable position of the company on the market and its relative economic strength. Nevertheless, the analysis of momentum, the relative strength index and the MACD signal show the signs of weakening the negative trend in the short and medium term, while recovering and increasing to more price levels can be expected in the longer term.