A. Fundamental Analysis

1. Find latest information on EPS and PE of AAPL and MSFT. Which stock is cheaper?

2. If the typical PE for a big cap stock is 20, are AAPL and MSFT more expensive? Why market would value AAPL and MSFT more expensive?

B. Technical Analysis

You will study candle charts of AAPL and MSFT from 1/1/2021 to 2/18/2022.

1. Using RSI

- Find a day when each stock is oversold (i.e. RSI <= 30). If you buy at market close on that day, what is your buying price?

- Find a day after that when each stock is overbought (i.e. RSI >= 70). If you sell at market close on that day, what is your selling price?

What is your profit or loss with this trade?

2. Finding support and resistance

- Find a support level for each stock and a resistance level next to that. Explain why you think those are support and resistance levels. You should submit the chart and draw those levels.

3. Using moving averages

- Using the moving average of 50 days, find uptrend and downtrend periods of each stock.

4. Using MACD

- Find a period when MACD < 0 and the next period when MACD > 0 in the chart of each stock. Then, find a day when MACD cross up (i.e., from < 0 to > 0): what is its price at close? Finally, find a day after that when MACD cross down (i.e., from > 0 to < 0): what is its price at close?

You will submit the chart with MACD and mark the crossing up and crossing down events.

If you buy on when MACD crossing up and sell when MACD crossing down; what is your buying and selling price; and what is your profit or loss?