Use the information from Problem 13 to calculate the three-day and five-day exponential moving averages for Auction Makers and graph your results. Place two-thirds of the average weight on the most recent stock price. Are there any technical indications of the future direction of the stock price?

Problem 13

Below you will find the closing stock prices for Auction Makers over a three-week period. Calculate the simple three-day and five-day moving averages for the stock and graph your results. Are there any technical indications of the future direction of the stock price?

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Week 1 2 3 Day Monday Tuesday Wednesday Thursday Friday Monday Tuesday Wednesday Thursday Friday Monday Tuesday Wednesday Thursday Friday Close $39.65 39.30 39.86 41.05 41.23 41.02 40.75 41.16 40.38 39.44 40.07 40.19 40.56 41.21 40.74