Microsoft in our spotlight!

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March 3, 2013
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March 5, 2013

Microsoft has been in our radar for a long time, waiting for this sleeping giant to start an upward trend. We have some positive signals that MSFT is in the beginning of an upward move. How big we don’t know yet, but below you will see our targets, our support levels that should not be broken and our technical analysis on this great company. For your information, the writer is not employed or compensated by this company in order to promote it by writing this analysis. This analysis is just my personal opinion and view using my technical indicators and analysis tools.

We start taking  a look at the daily chart with our system indicators.

MSFT

All of our indicators, both short and long-term, are green pointing upwards. Most recently our Longer term indicator has been broken when the new closing high was made yesterday.

msftclouds

Zooming out from the previous chart we observe that prices have broken out of the resistance level from the . Short term support that could alter short-term trend is the 27,65$ price level. A close below that will alter our short-term trend signal from long to short. A break and close above 28,30$ will strengthen our bullish view.  Intermediate term resistance is found at 28,45$ that if broken will push prices towards 29$. Intermediate term support is found at 27,33$ and after that at  26,74$.

Concluding we have turned bullish with initial target the 29$ mark and stop zone the 27,23$ low. Breaking the resistance will make us move both stop and targets higher. This could be the beginning of a sizeable upward move. Always remember to place your stop orders to protect against the violent corrections. For more help trading this equity, don’t hesitate to contact us.

As always, thank you for taking the time to catch up on my thinking.

A chart used in technical analysis that shows support and resistance, and momentum and trend directions for a security or investment. It is designed to provide relevant information at a glance using moving averages (tenkan-sen and kijun-sen) to show bullish and bearish crossover points. The "clouds" (kumo, in Japanese) are formed between spans of the average of the tenkan-sen and kijun-sen plotted six months ahead (senkou span B), and of the midpoint of the 52-week high and low (senkou span B) plotted six months ahead.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.