MSFT Ascending Triangle

Although the GA Elections have caused some mayhem in the tech sector, $MSFT has been able to accumulate a solid support level over the last few months. It appears to be forming an ascending triangle, which should breakout within the next few months. Breakout should occur after resistance around $228 is broken. A loose price target of $250 is estimated using a 1:1 triangle ratio.

Summary:
- Bullish Ascending Triangle
- Midterm price target of $250
- R1 (Resistance) at $228
- S1 (Support) @ $210
- S2 (Support) @ $202

For a conservative approach, wait until resistance is broken before entering a trade. If $MSFT breaks out of the lower portion of the triangle or loses support, a bearish run could occur.

Disclaimer: This is not professional trading advice and should not be taken as such. All posts are ideas and should be taken as educational only.

Trade active:

$215C 1/21/2022 (LEAP)
Cost: $26.60/contract

Comment:

MSFT Following the triangle quite nicely. We may see a few more oscillations between $226 and the lower bound of the triangle before a breakout occurs.

Comment:

Looks like MSFT smashed through resistance and will be taking a nice trip to the moon here tomorrow. If there is a pullback, which can happen even if MSFT beats earnings, I would take it as an excellent opportunity to buy and go long. MSFT will sometimes have a little dip after earnings dates which can offer a discount for long-term investors.

Comment:

Earnings: $2.03 per share, adjusted, vs. $1.64 per share expected (+23.8% suprise)
Revenue: $43.08 billion, vs. $40.18 billion expected (+7.2% suprise)

Comment:

MSFT clear breakout from ascending triangle continues. Uptrending toward price target nicely.