NASDAQ:MSFT   Microsoft Corp.
The daily chart shows a series of bearish RSI divergences while price has continued to move higher. Volume is not confirming higher highs and stochastic is topping off, indicating a high probability we are at the top of this sequence. Weekly and monthly charts are also showing similar bearish RSI divergence patterns, foreboding that a future correcting wave will be quite violent. I have a short term price target of $65 per share.
Comment:
Looks like Bulkowski's Ending Diagonal. I think we may see one final wave upward to $2014 around September 7th/10th.
Comment: ^Ignore, I posted on the wrong idea; my apologies.

Comments

Are those two lines targets or support? And remember they have earnings the 25th, which could skew the entire TA aspect of the stock. I do also agree that they have topped out and have ran out/are running out of steam. But unfortunately TA can't be done in a vacuum. I do expect a small retrace before earnings but their postings are going to have more to do with the short term price movements than oscillators.
Reply
AftabAli merkd1904
@merkd1904, I think MSFT earnings date is July 19th. I believe consensus is relying too heavily on favorable earnings to keep the bull market running. In my opinion, tech is currently priced to perfection, with very favorable earnings expected. Anything short of a monsterous beat will likely cause a sell off. Of course, I understand this is simply TA, which is why I try to use it as a tool to gauge risk/reward. Personally, I don’t see enough upside to compensate for the risk of purchasing MSFT stock at its current price. With regards to the red & yellow horrizontal lines, those are support levels based on a fibonacci retracement. Hope this helps.

Cheers,
Aftab
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