MSFT has formed a double bottom with price twice bouncing off support around $304. This suggests that the prior downtrend(that carried price down from $344 to $304) may be reversing and could be a bullish opportunity for investors. Price target #1 is around $314, the first level of resistance; PT#2 would be around $323. A stop loss should be placed at $303; if price falls back to $304 and, finding support, bounces, we could see a triple bottom. Anything past that level would invalidate the trade premise.
From an options perspective, weekly calls(expiring Jan 21) with a strike of $315 could yield profits. Trim as price increases & place a stop loss according to the risk you can tolerate; you certainly don't have the luxury to wait for price to triple bottom.
@pentrades seems like the bears want to drive the price down to see if 304 will hold in. the morning ... if it does we have a confirmation to expect a little upside and we will have the triple bottom
@pentrades is it just me or does it look like microsoft is in a rising wedge ready to break down and retest again
UnknownUnicorn30271326
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@lavontakeyamon, now that you bring it up I can definitely see the rising wedge (didn't consider this before). I suppose it would be worth waiting to see which direction price resolves.
UnknownUnicorn32969573
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@pentrades, being that spy will be bullish this week short term, i expect microsoft to open around 308, break out of the wedge and find strong support around 306, and then maybe continue the uptrend outside of the wedge .... i bought a put on friday that im dumping as soon as it retests the lows
UnknownUnicorn30271326
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@lavontakeyamon, yup you were right; its down to 305 premarket; good job with those puts
UnknownUnicorn32969573
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@pentrades, it may open around 302 ..... strong support at 300 and 298
@pentrades, i really dont mess with Nike but i expect the market to do whatever Spy does this week .... whether its crypto or stocks ... id be watching Spy ... stocks will move this week based off it because of the level of uncertainty