Question

$n8mgp_i4IHDe_-5vR8Zxy7RdZCZBybz0ly6eFBWC$

		MACD			RSI		OBV	Overall
stock	Trend	crossover	confirm/Diverge MACD	confirm/Diverge Histogram	OB/OS	confirm/Diverge	confirm/Diverge	Bull/Bear	Recommendation

For crossover:

1.       If the MACD has recently crossed over the signal line from below, this is a bullish signal. Write bullish in the crossover column.

2.       If the MACD has recently crossed over the signal line from above, this is a bearish signal. Write bearish in the crossover column.

3.       If there hasn’t been a crossover recently, don’t write anything in the crossover cell.

For the MACD divergence/ confirmation signal, you will compare the recent slope of the MACD or histogram to the recent price trend of the stock. The scenarios and signal are as follows:

1.       If the stock trend is up and the slope of the MACD/histogram is up, then this is bullish.

2.       If the stock trend is up and the slope of the MACD/histogram is flat to down, then this is bearish.

3.       If the stock trend is down and the slope of the MACD/histogram is down, then this is bearish.

4.       If the stock trend is down and the slope of the MACD/histogram is up, then this is bullish.

For the RSI analysis, there are two signals to look for: overbought/oversold and divergence/confirmation.

For the overbought/oversold signal:

1.       If RSI > 70, the stock is overbought and the signal is bearish

2.       If RSI < 30, the stock is oversold and the signal is bullish

3.       If the RSI is between 30 and 70, don’t write anything in this cell

For the RSI divergence/ confirmation signal, you will compare the recent slope of the RSI to the recent price trend of the stock. The scenarios and signal are as follows:

1.       If the stock trend is up and the slope of the RSI is up, then this is bullish.

2.       If the stock trend is up and the slope of the RSI is flat to down, then this is bearish.

3.       If the stock trend is down and the slope of the RSI is down, then this is bearish.

4.       If the stock trend is down and the slope of the RSI is up, then this is bullish.

For On-Balanced Volume, you will look for a divergence/ confirmation signal. You will compare the recent slope of the OBV to the recent price trend of the stock. The scenarios and signal are as follows:

1.       If the stock trend is up and the slope of the OBV is up, then this is bullish.

2.       If the stock trend is up and the slope of the OBV is flat to down, then this is bearish.

3.       If the stock trend is down and the slope of the OBV is down, then this is bearish.

4.       If the stock trend is down and the slope of the OBV is up, then this is bullish.

For your write-up, I want to see a table similar to the one above that compares the four stocks. You will then add up the total number of bullish and bearish signals including the price trend. You will recommend the one stock from the four that you would buy and the one stock from the four that you will sell (or short). The following guidelines will help you determine the buy and sell:

1. The buy is the stock with either:
   1. The highest number of bullish signals or
   2. The least number of bearish signals

2. The sell is the stock with either:
   1. The highest number of bearish signals or
   2. The least number of bullish signals

Answer 1

Stock - GM (General Motors)

Trend - Stable Bullish

MACD:-

CrossOver - No recent crossover

Confirm Diverge MACD & Histogram - Bullish since histogram and MACD is trending up.

RSI:-

OB/OS :- Since indicator is between 30-70, stock isn't over bought or oversold.

Confirm/Diverge - Stock histogram prices are fairly up however RSI indicator is flat to slight bearish hence over all indicator is bearish.

OBV:-

Bull/Bear :- though stock price histogram is trending up OBV indicator is flat to slight bearish.

Recommendation :- two out of three indicators point towards stable to downward stock prices hence over all recommendation would be hold or sell.