FIN Project

Technical Analysis of TSCO Stock Performance and Market Trends Student’s Name University Name Course Number and Name Professor’s Name Date Technical Analysis of TSCO Stock Performance and Market Trends 5-Year Weekly Candle Chart This 5 -year weekly candle chart is instrumental in understanding the market’s long-term trend for the S&P 500. From looking at this chart, one can easily tell that the price of the S&P 500 has been on an upward trend. This observation is supported using the moving average strategy. The chart uses a 50 and a 200 -period Moving Averages (MA). It is clear that the 50-period MA represented in blue has been above the 200 period MA which is in red. This is a bullish signal which is usually described as a golden cross. However, the candle charts shows that there have been occasional market corrections after which the uptrend remains resilient. In approaching the current market price, the two moving averages seems to have reduced divergence. Also, the uptrend has been resilient for 5 years. These two observations suggests that the market may be approaching a consolidation zone and possible pause in uptrend. 1-Year Daily Candle Chart Moving on to a short-term market dynamic, the S&P 500 price stills seem to be in an uptrend. As observed in the chart, the candle sticks curve is above the 50- and 200-point moving averages. This confirms a bulling breakout in the short-term. Observing the moving averages shows that the golden cross is maintained in the last few months thus signaling upward momentum. From the chart above, the MACD indicator clearly supports the uptrend analysis. As observed, the MACD and signal lines are above zero in the last few months. The S&P 500 price also do not show any sign of a bearish divergent which suggests strong momentum in the uptrend. Five-Year Weekly Bar Charts of Your Stock The TSCO stock price trend is presented using a log scale with an On-Balance Volume (OBV) indicator. The chart shows that over the five-year period, the stock’s price has been rising. In the upper panel, the stock price is observed to be on an uptrend. This trend is replicated on the lower panel where OBV also shows a rising trend. The correspondence between these two curves suggests that buying is supported b...