MSFT appears to be trading in a horizontal trading range known as a Rectangle. This pattern is neutral until a trendline is broken with a trend in that direction.
MSFT seems to have fallen from a Rectangle top and wound up in another Rectangle. The top trendline of the lower rectangle is the bottom trendline of the Rectangle top. That trendline is now resistance.
There is a double bottom, very close to a triple bottom, at the bottom trendline, which is support until broken. Whether it holds or not remains to be seen. There are also 3 pocket pivots at the support line. It is possible price could bounce up here.
Now that I look there could be an inverse head and shoulders with the last bottom being the head. This pattern does well in a bull market. I have noted many failures as of late. The 2nd shoulder is a tad lower than the 1st. Neckline 291.39ish.
I own this long term in my IRA but I bought it 15 years ago, so I am not in the red. I did sell 1/2 of my position close to the top when I realized there are Rising Wedges way down below price. They are not valid as the bottom trendline has not been broken. I felt that the market was turning on me and sold what I could manage to part with as I am a MSFT fan versus an AAPL fan. I like AAPL, I just prefer MSFT.
Did I make the right decision by not selling all of it? Dunno but I will live with my decision and buy more at the bottom. I have not bought more on the pull backs so far.
Negative longer term simple moving average crossovers denoted with orange Xs. The alligator indicator/red, white and blue but is supposed to be in that order with red on top and blue on bottom, is pointing down. These are shorter term averages with some tweaks created by Bill Williams.
Orange numbers below price are possible targets if rectangle breaks down. Smaller orange numbers below price are targets to for a break down if targets 1 are surpassed.
The white numbers above current price are possible targets if by some miracle, this rectangle breaks up.
Stranger things have happened.
No recommendation.
Patterns morph and nothing stays in the same in the market for long it seems. Any pattern, trendline support or resistance level can also fail.
MSFT seems to have fallen from a Rectangle top and wound up in another Rectangle. The top trendline of the lower rectangle is the bottom trendline of the Rectangle top. That trendline is now resistance.
There is a double bottom, very close to a triple bottom, at the bottom trendline, which is support until broken. Whether it holds or not remains to be seen. There are also 3 pocket pivots at the support line. It is possible price could bounce up here.
Now that I look there could be an inverse head and shoulders with the last bottom being the head. This pattern does well in a bull market. I have noted many failures as of late. The 2nd shoulder is a tad lower than the 1st. Neckline 291.39ish.
I own this long term in my IRA but I bought it 15 years ago, so I am not in the red. I did sell 1/2 of my position close to the top when I realized there are Rising Wedges way down below price. They are not valid as the bottom trendline has not been broken. I felt that the market was turning on me and sold what I could manage to part with as I am a MSFT fan versus an AAPL fan. I like AAPL, I just prefer MSFT.
Did I make the right decision by not selling all of it? Dunno but I will live with my decision and buy more at the bottom. I have not bought more on the pull backs so far.
Negative longer term simple moving average crossovers denoted with orange Xs. The alligator indicator/red, white and blue but is supposed to be in that order with red on top and blue on bottom, is pointing down. These are shorter term averages with some tweaks created by Bill Williams.
Orange numbers below price are possible targets if rectangle breaks down. Smaller orange numbers below price are targets to for a break down if targets 1 are surpassed.
The white numbers above current price are possible targets if by some miracle, this rectangle breaks up.
Stranger things have happened.
No recommendation.
Patterns morph and nothing stays in the same in the market for long it seems. Any pattern, trendline support or resistance level can also fail.
Comment:
Correction: Smaller orange numbers below price are targets 2 for a break to the downside if price goes below targets 1.