Using the stocks assigned to you in the current portfolio (“NRG Energy Inc” and “Otter Tail Corp”) , obtain a daily stock price chart. Use candlestick style and include the following indicators: Volume, MACD, Bollinger Bands, and 50 and 200 days exponential moving average (EMA) of closing prices. You may use 12 or 18 month charts. Print the charts to PDF so you can insert easily in a document.
Has MACD, Bollinger Bands, and moving averages given any buy/sell signals. Discuss.
Draw on the chart major uptrend and downtrend lines. Identify interesting chart formations. (Head and shoulders, symmetrical, ascending and descending triangles, cup and handle, rounding tops and bottoms, gaps, etc.) Are there cases the stock has broken out on the upside or downside with good volume?
Establish support and resistance levels. Discuss why these are support and resistance points. Has the stock penetrated these levels? What signal is indicated?
Examine the short interest position and its trend during the past 3-4 months in your stock. Are you more bullish or bearish? http://www.nasdaqtrader.com/asp/short_interest.asp (Links to an external site.). Check finance.yahoo.com also. Also, see Factset: Company/Ownership/Ownership 2.0/short interest
