MSFT: We all must be aware of these KEY POINTS!
Hello traders and investors! Let’s talk about MSFT today! The volatility increased a lot recently, so, let’s see the daily chart first, followed by the weekly chart.
Yes, MSFT is doing a correction right now, which is fine, considering it performed very well a few weeks ago. In fact, MSFT did a Bearish Engulfing, just after it retested the 21 ema, and this made it drop to its support levels.
The first support level is the black line at $ 227, which was a previous resistance, and now it is working as a support, an expected movement according to the Principle of Polarity. The other support is the purple trendline, which was a previous resistance for this huge Symmetrical Triangle pattern. Keep this Triangle in mind, we have more to say about it.
Meanwhile, the volume increased, along with the volatility, meaning that this is not an easy time for MSFT, and if it loses these support levels, it could easily retest the lower purple trendline. Therefore, we must see a reaction quickly.
Now, then weekly chart:
The Triangle chart pattern seen in the daily chart is a Pennant pattern in the weekly chart, and both reinforces a long-term bullish bias on MSFT. Now, all we can assume is that the stock is doing a correction in the weekly chart, after a breakout of this Pennant, which makes sense. Since this Pennant is a Symmetrical Triangle in the daily chart, and this pattern has a pullback rate of 65% after a breakout, this movement makes statistical sense.
What’s more interesting is that it just hit the 21 ema, which is another support level for MSFT. The volume is quite high, and the situation is still dangerous, but if we see any bullish reaction around, the bearish sentiment seen in the last few days could come to an end. We don’t have a buy signal, but this is definitely not a bear market yet (no lower highs/lows). Right now, is time to wait and manage positions.
If you want to keep in touch with my daily analyses, remember to follow me. And since you are still here, please, support this idea. Probably you found it interesting, or you wouldn’t still be reading this.
Thank you very much, have a nice weekend!
Yes, MSFT is doing a correction right now, which is fine, considering it performed very well a few weeks ago. In fact, MSFT did a Bearish Engulfing, just after it retested the 21 ema, and this made it drop to its support levels.
The first support level is the black line at $ 227, which was a previous resistance, and now it is working as a support, an expected movement according to the Principle of Polarity. The other support is the purple trendline, which was a previous resistance for this huge Symmetrical Triangle pattern. Keep this Triangle in mind, we have more to say about it.
Meanwhile, the volume increased, along with the volatility, meaning that this is not an easy time for MSFT, and if it loses these support levels, it could easily retest the lower purple trendline. Therefore, we must see a reaction quickly.
Now, then weekly chart:
The Triangle chart pattern seen in the daily chart is a Pennant pattern in the weekly chart, and both reinforces a long-term bullish bias on MSFT. Now, all we can assume is that the stock is doing a correction in the weekly chart, after a breakout of this Pennant, which makes sense. Since this Pennant is a Symmetrical Triangle in the daily chart, and this pattern has a pullback rate of 65% after a breakout, this movement makes statistical sense.
What’s more interesting is that it just hit the 21 ema, which is another support level for MSFT. The volume is quite high, and the situation is still dangerous, but if we see any bullish reaction around, the bearish sentiment seen in the last few days could come to an end. We don’t have a buy signal, but this is definitely not a bear market yet (no lower highs/lows). Right now, is time to wait and manage positions.
If you want to keep in touch with my daily analyses, remember to follow me. And since you are still here, please, support this idea. Probably you found it interesting, or you wouldn’t still be reading this.
Thank you very much, have a nice weekend!
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