Question: Technical analysis may help you understand the historical data. In Week 2 you identified a security and explored standard deviation and beta for this security.

Technical analysis may help you understand the historical data. In Week 2 you identified a security and explored standard deviation and beta for this security. Now locate the 50-day, 100-day, and 200-day moving average of this security price at a site such as yahoo finance. Based solely on each average, should you be a buyer or a seller? Do all three averages confirm the implied direction of change in the price of each stock? What is the benefit of technical analysis? What are its limitations?

Post a brief summary of technical analysis in the context of your findings of moving averages. Can you time buying or selling of stocks based on technical analysis?

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