Microsoft Shares (MSFT) Completes Turnaround!
MSFT $29.46, +0.20%
Microsoft Shares (MSFT) behaved as I hope to today as it continued a 3rd day of gain on growing volume. My complaint about MSFT's invert hammer formation was that it was not supported with a strong volume surge, however, MSFT's price action today formed a Hammer candlestick formation (not an Inverted Hammer) on higher than average volume. A Hammer formation is formed when prices closed near the high of a large intraday range. This suggests that the bulls were strong enough to take over by the end of the day to close prices higher eventhough there were significant selling pressure bringing prices to intraday low. This is an extremely bullish candlestick signal when supported by a significant volume surge... like the one we saw today. This move tells me that the MSFT rally is confirmed and we can expect more upside to come.
All short term momentum indicators showed that there are more headroom to go with growing strength to upside. For now, I am BULLISH on MSFT and see an immediate resistance level at $30.00, which is the 30 days simple moving average which used to be its support level. A high volume break above that level would certainly ensure more upside to go.
MSFT Technical Chart By Worden Brothers TC2007 Charting Software
Voted Best Software By Readers Of Stocks & Commodity Magazine Since 1993!
Microsoft Shares (MSFT) behaved as I hope to today as it continued a 3rd day of gain on growing volume. My complaint about MSFT's invert hammer formation was that it was not supported with a strong volume surge, however, MSFT's price action today formed a Hammer candlestick formation (not an Inverted Hammer) on higher than average volume. A Hammer formation is formed when prices closed near the high of a large intraday range. This suggests that the bulls were strong enough to take over by the end of the day to close prices higher eventhough there were significant selling pressure bringing prices to intraday low. This is an extremely bullish candlestick signal when supported by a significant volume surge... like the one we saw today. This move tells me that the MSFT rally is confirmed and we can expect more upside to come.
All short term momentum indicators showed that there are more headroom to go with growing strength to upside. For now, I am BULLISH on MSFT and see an immediate resistance level at $30.00, which is the 30 days simple moving average which used to be its support level. A high volume break above that level would certainly ensure more upside to go.
MSFT Technical Chart By Worden Brothers TC2007 Charting Software
Voted Best Software By Readers Of Stocks & Commodity Magazine Since 1993!
Labels: microsoft, MSFT, msn, msn window, vista, window, window vista, windows, windows vista
posted by Jason Ng at 6:52 PM
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