Assume the following daily closing for Kuala Lumpur Composite Index (KLCI).

day KLCI

1 1130

2 1250

3 1315

4 1240

5 1310

6 1290

7 1270

8 1265

9 1250

10 1240

(a) Calculate a five days moving average for Days 5 through 10.

(b) Plot the chart for five days moving average against daily movement.

(c) Assume the index on Day 11 closes at 1290. What would be your decision based on the signal?