Microsoft Corporation – Applied Fund Management – Essay – Hanny Phyo Wai AyeSearchEssaysSign upSign inContact usTweetIndex/BusinessMicrosoft Corporation – Applied Fund ManagementHanny Phyo Wai AyeApplied Fund ManagementIntroductory of Technical AnalysisThis report summarises the performance of historical stock prices on two corporations and conducts the technical analysis based on the output data of moving averages on each stock from the Ox computer code, which may refer to the appendix in section three. Basically, moving average, which is the most simple and reliable analytical tool, will be used to determine the future price movement of the financial assets. By using this approach, traders and investors could simply track down the number of fluctuations or noises on a daily stock price chart. To be more specific about the length of moving average, a shorter period is more suitable for short-term trading and a longer period used for long-term investors. In this report, there are two main sections of technical analysis on the historical financial asset prices of Microsoft Corporation for 15-day and 80-day moving averages and General Electric Corporation for 40-day and 200-day moving averages periods.
Technical Analysis on Microsoft CorporationThe 15-day and 80-day Moving AveragesIn section one, the historical data of Microsoft between January 1993 and March 1994, the 15 months period will be used to analyse the past prices for short-term and long-term moving averages. In the following line chart, the red line represents the average price over the past 15 days, short period, whereas the blue line stands for the average price over the past 80 days, longer period. The 15-day moving average has a significant amount of lag than the 80-day moving average since shorter period contains only the past 15 days prices in the figure below. When these two moving averages are plotted onto a chart, we can identify the direction of the price whether angled up or down which means it is moving up or down overall. By identifying these moving averages break above or below, investors and traders are able to determine the prominent trading signals for both entries and exits.
The charts in the bottom right of this page can be accessed at the following links:
http://www.microsoft.com/eng.asp?ref=1450
http://www.microsoft.com/research/movies/en/index.html
http://www.microsoft.com/search?q=the+search+information+page+p>
Figure 1 Technical Analysis on Microsoft Corporation with 15-day and 80-day Moving AveragesSource: Technical Analysis on MICROSOFT CORPAs shown in the figure above, the 15-day moving average was crossover down through the 80-period moving averages signals a price breakdown that should start a new downward trend at the beginning of February 1993, in which the price was decreased by $88 per share. The occurrence of this downward momentum with a bearish situation is also called a death cross, which indicates a sell signal for traders to make a trading decision simultaneously. Once again in July 1993, a declining moving average with shorter period occurred and this result alarms traders to make a selling Microsoft stock in a bearish market. In the downtrend, the 80-day moving average performs as a resistance; like a ceiling as the price bounced up and then dropped again.
On the other hand, there were three strong indicators in May and September 1993 and January 1994. Among these three periods, the highest trading price was approximately $93 per share which was increased from $86 per share in May 1993. The prices of the rest periods rose from $80 to $83 per share in September 1993 and $81 to $85 per share in January 1994. Nonetheless, these trading signals are buying signals which indicate the uptrend momentum with a golden cross, where the shorter period is crossing up through, the longer period. In this bullish situation, traders are more likely to make a decision on buying stocks in the marketplace.
Overall, the reaction of moving average with the shorter look-back period (15 days) was faster in price variation than the average with the longer look back period (80 days). Thus, the 15-day moving average provides a lot more reversal signals than the 80-day did. This means the traders who prefer in short-term investment will be more likely to use this trading strategy.
Technical Analysis on General Electric CorporationThe 40-day and 200-day Moving AveragesIn the second section, the technical analysis on General Electric Corporation will be performed based on the past prices for two years; 1993 and 1994. Similar to the analysis on Microsoft, the red and blue lines describe the short-term and long-term moving average periods, respectively.
Figure 2 Technical Analysis on General Electric Corporation with 40-day and 200-day Moving AveragesContinue for 10 more pages »Read full documentDownload as (for upgraded members)Citation GeneratorMLA 7CHICAGO(2018, 10). Microsoft Corporation – Applied Fund Management. EssaysForStudent.com. Retrieved 10, 2018, from“Microsoft Corporation – Applied Fund Management” EssaysForStudent.com. 10 2018. 2018. 10 2018 < "Microsoft Corporation - Applied Fund Management." EssaysForStudent.com. EssaysForStudent.com, 10 2018. Web. 10 2018. < "Microsoft Corporation - Applied Fund Management." EssaysForStudent.com. 10, 2018. Accessed 10, 2018. Essay Preview By: Hanny Phyo Wai Aye Submitted: October 3, 2018 Essay Length: 2,535 Words / 11 Pages Paper type: Essay Views: 193 Report this essay Tweet Related Essays The Microsoft Corporation The Microsoft Corporation has been around for many years now, and for many years, they have provided the leading operating system to consumers and 1,279 Words  |  6 Pages Discuss the Challenges Facing Multinational Corporation in the Management of Global Talent “The Jack Welch of the future cannot be like me. I spent my entire life in the United States. The next head of General Electric 2,891 Words  |  12 Pages Active Vs. Passive Fund Management FINS 2624 ASSIGNMENT 2 EXECUTIVE SUMMARY To sum up, based on the discussion above, it seems that for the US market, it appeared to be 6,937 Words  |  28 Pages Microsoft Corporation (msft) Finance Paper Microsoft Corporation (MSFT) Company Overview Formed in 19, Microsoft started by selling a BASIC interpreter which quickly established a reputation for excellence. As the popularity 297 Words  |  2 Pages Similar Topics Management Using Microsoft Outlook Improve Management Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up © 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter