Microsoft Shares (MSFT) Ends Correction On Schedule!
MSFT $29.40. +1.34%
Well well, MSFT is on time on schedule this time round isn't it? :)
Its turnaround was completed yesterday as MSFT gains 1.34%. Short term stochastics and RSI along with MACD unanimously indicated upside momentum. There is just something I do not like about this "turnaround"... It did not happen on the strong volume that I typically see associated with a full scale turnaround. In fact, the candlestick signal that was formed was again an inverted hammer. The difference about this inverted hammer and the one that we saw on 8 Feb 07 was that the first inverted hammer showed that there are buying interest in a stock and when supported by the right technical indications will mean that a decline is coming to an end. This inverted hammer showed that buying interest was beaten down by the end of the day on relatively low volume. This suggests that buying interest is still shaky and that this turnaround may not be real. This gain may be due to the effects of the optimism and rally in the market yesterday and not something related to MSFT in particular. I would love to see a follow up today with strong volume before I conclude that MSFT's second rally has started. For now, I remain neutral on MSFT.
Well well, MSFT is on time on schedule this time round isn't it? :)
Its turnaround was completed yesterday as MSFT gains 1.34%. Short term stochastics and RSI along with MACD unanimously indicated upside momentum. There is just something I do not like about this "turnaround"... It did not happen on the strong volume that I typically see associated with a full scale turnaround. In fact, the candlestick signal that was formed was again an inverted hammer. The difference about this inverted hammer and the one that we saw on 8 Feb 07 was that the first inverted hammer showed that there are buying interest in a stock and when supported by the right technical indications will mean that a decline is coming to an end. This inverted hammer showed that buying interest was beaten down by the end of the day on relatively low volume. This suggests that buying interest is still shaky and that this turnaround may not be real. This gain may be due to the effects of the optimism and rally in the market yesterday and not something related to MSFT in particular. I would love to see a follow up today with strong volume before I conclude that MSFT's second rally has started. For now, I remain neutral on MSFT.
Labels: microsoft, MSFT, msn, msn window, us market, usa, vista, window, window vista, windows, windows vista
posted by Jason Ng at 3:12 AM
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