✅Monthly MACD Cross ✅ Long Term parallel channel intact ✅ Above 200 day & week MA ✅ Cup and Handle (with a high handle - Preferred) ✅ Good Risk: Reward Ratio at 7.6 (51%+ vs -7% loss) ⚠️ Stop loss levels on chart 🫡
A great set up. Those that are patient could wait for a potential pull back (arrow on chart) as we are reaching into overbought levels on the RSI on the weekly. It would not be unusual for Microsoft to pull back 5-8%. The R:R would be significantly improved if you waited and if it led to an entry from approx. $350 (after a 5-8% pull back), this would line up with the 200 DSMA also. However there are no guarantees of a pull back.
Those half as cautious could enter half a position here and see what happens and place another entry at $350.
All in all the $330 - 335 red box area on the chart is an absolute stop loss level. If this level is lost I would be out of the trade fast.
So you have options with this set up: 1) Entry here with a tight 7% stop. 2) Half a position here and half at approx. $350 with a stop at $335. 3) You wait for $350 and you place your stop at $330.
These all result in a similar loss of 5 - 7% in the event the trade fails. The upside potential is always 50%+. You can always cut early also at target one and take something at the 26% profit level.
It important you take full responsibility for your trade, position accordingly and be ok with the small 5-7% loss as it will likely happen, we are only leaning on the probability that maybe 60-70% of the time these trade set up provide us the return we want.
I have not really ventured into the earnings or dividends however they are both positive contributors to this trade as earnings have been excellent and dividends whilst minimal, are dividends at the end of the day. We are here for the trade and play a set up off the chart. The fundamental's are just nice framing for the stock in our minds eye.
awesome work on MSFT and I am also looking for longs💵💵
PukaCharts
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@basictradingtv, Good Luck!! 2nd largest company in the world at $2.725 Trillion. At least we know there is liquidity if we want to exit. Something just dawned on... Microsoft has not had a stock split Since Feb 2003, 10 years ago. A split is usually 2:1. They split a lot at the $40 - $50 level. I wonder... will they do something similar at the $400 - $500 dollar level?
nvser
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awso😍👏
abinvestor24
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Your market analysis is like charting a course for success. Thanks for the guidance!
PukaCharts
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@abinvestor24, Thank you so much Abinvestor! A good set up is through good charting/TA
wolf_king888
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Perfect handle structure, this one is a great find
KaanUralAksu
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Everything on point. Looks like we have a profit if a global crisis does not occur.
StockSignaler
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@Baskalex, unfortunately I think we get the crisis first and massive rally second (beginning late 2024)
PukaCharts
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@StonkSignaler, we might ride up into the wave before it crashes, if it crashes. My Macro Monday 20 I released yesterday here suggests we may already in a recession, a recession with excess liquidity sloshing around making it seem less pronounced .