- From the Yahoo Finance Website, collect weekly price and weekly volume information for the period: October 8, 2018 (Mon.) – October 11, 2019 (Fri.). This should be about 52 weeks of information with the week beginning October 9, 2018 (Mon.) being the 1st week and the week beginning October 7, 2019 (Mon.) being the last week. This data can be provided using the historical price function at the Yahoo Finance Website. Prepare a table of this price and volume information. Using the Interactive Charting function at the Yahoo Finance Website, in which you can set the range for the price series at the bottom of the graph, graph the weekly price and volume data for your stock for this period. Present this table and the graph in your project report.
- Based upon the data gathered in question #1, establish support and resistance levels for your stock. Discuss the justification of why you feel these are support and resistance levels.
- Prepare a similar weekly stock price and weekly volume chart for the period: October 14, 2019 (Mon.) – October 16, 2020 (Fri.). You can also gather this same data at the Yahoo Finance Website and graph the data using the same functions as in question #1 above. Present this table and the graph in your project report.
- Given your answers to #2 and your graph in #3, has the stock penetrated the support and resistance levels during the 10/14/2019 – 10/16/2020 period? If so, discuss what action you would take and why?
- For the period October 8, 2018 – October 11, 2019, using the same functions at the Yahoo Finance Website, plot the weekly price (close) movement in your company’s stock against: (a) 50 day moving average price line, and (b) 200 day moving average price line. Include in your plots the weekly volume for your company. Present this graph in your project report as well. Given the weekly price movements relative to each of these moving average lines and the weekly volume, what would you do and why? Perform the same analysis for the period 10/14/2019 – 10/16/2020 for the two moving average price lines and present this graph, too, in your project report. What actions would you take and why?
- Implement a filter rule for your stock for the 10/8/2018 – 10/11/2019 period. Prepare a table which compares the dollar profits (losses) on the trading strategy with the profits (losses) on a naive buy and hold strategy. Assume trading in lots of 100 shares and a 1% (one-way) commission. Does your filter rule hold? Perform the same analysis for the 10/14/2019– 10/16/2020 period. Does the filter rule work here?
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