Microsoft Shares (MSFT) Slipped Below 100 Days Moving Average...
MSFT $28.98, -0.96%
Microsoft shares (MSFT) slipped below its 100 days moving average last Friday to close $28.98 after showing an inverted hammer candlestick signal. It not only broke a fairly important level but also did it on a volume surge. Yes, MSFT's trading volume was at 3 days high last Friday when the bellwether stock ditched further down. So, what does a break on high volume mean? Yes, more downside to come. As I have mentioned yesterday, if MSFT slips below its 100 days moving average, we could be seeing a testing of the 200 days moving average next. Currently, the 200 days MA stands at the $26.50 level. Certainly looks like a long way down, doesn't it? However, opening up the time scale, we see that the $28.00 level used to be a strong resistance level for MSFT. Such a resistance level, usually serves also as a strong support level. Now that the swing traders and trend traders have jumped onto this bearish wagon and has brought MSFT lower on rising volume, a testing of the $28.00 will be inevitable. Let's see how the stock behaves at that level. For now, I remain short term bearish on MSFT but I continue to maintain a long term bullish outlook for MSFT with $33 as my immediate price target.
MSFT Technical Chart By Worden Brothers TC2007 Charting Software
Voted Best Software By Readers Of Stocks & Commodity Magazine Since 1993!
Microsoft shares (MSFT) slipped below its 100 days moving average last Friday to close $28.98 after showing an inverted hammer candlestick signal. It not only broke a fairly important level but also did it on a volume surge. Yes, MSFT's trading volume was at 3 days high last Friday when the bellwether stock ditched further down. So, what does a break on high volume mean? Yes, more downside to come. As I have mentioned yesterday, if MSFT slips below its 100 days moving average, we could be seeing a testing of the 200 days moving average next. Currently, the 200 days MA stands at the $26.50 level. Certainly looks like a long way down, doesn't it? However, opening up the time scale, we see that the $28.00 level used to be a strong resistance level for MSFT. Such a resistance level, usually serves also as a strong support level. Now that the swing traders and trend traders have jumped onto this bearish wagon and has brought MSFT lower on rising volume, a testing of the $28.00 will be inevitable. Let's see how the stock behaves at that level. For now, I remain short term bearish on MSFT but I continue to maintain a long term bullish outlook for MSFT with $33 as my immediate price target.
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, technical analysis, vista, windows, windows vista
posted by Jason Ng at 5:40 AM
2 Comments:
Hi there,
Thanks so much for keeping us updated on the market. My husband usually does all this but I like to check in on what others have to say. This is a great resource for me.
Sherry,
I am so glad that you found my daily analysis useful. :) I will continue to do my best and to provide the most original content so that you can get a new perspective on the markets. :)
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