In my last idea that I've been written about MSFT which called "MICROSOFT: NO CONFIRMATION" I said that "...but I can tell about price current position that the next move has to be down so it can hit one of two powerful support's, after hitting one of these supports it makes sense for the price to go up." - and we can see this is exactly what happened.
alright now, the price last week drops to $110.82 levels and for me, this is a normal movement to happened after price fly for months and after making higher highs I was waiting for it to pullback like this.
But how did I know where the price will get rejected?
will it's not hard you can see in the chart that the price on 26 Jul '18 hit the same levels for the first time ($110.82). If you were watching Microsoft for a while you'll find the point. Now after the price hit that level he got rejected and we see the price fall to make a support at ($105.94) before back to going up and break ($110.82) resistance levels and switch it to a .
And the same thing happened in '19 sep "18' when the price tried to back down but he got rejected from the ($110.82) . So technically when we see level hard to break up or down we must know how the price will act in the same situation in the future.
Now, Last week if we take a look at the we'll found that the price is basically overbought and this is what makes me waiting for this movement.
What's going to happen next:
If you take a look at the lower line of the , it's trying to go upside and the Upper-line trying to back down, what we understand that may squeeze will happen and this is will make the price stay flipping between ($110.82) and ($116.18).
But why I said that the price will keep moving between these two levels, take a look at the last Candle, its right? and we know that 'Morning Star' means the price willing to make a reverse upside.
also, 90% of the conditions of this reverse come true.
The 6 Generally Rules for Candlestick:
1. Downtrend (happened)
2. Candle (happened)
3. Gap Down (the last candle open at $112.63 and the previous candle closed at $112.79, the gap down = 0.16. So it's happened)
4. Small Bullish/Bearish Candle (happened)
5. Gap Up (should happen tomorrow)
6. Candle (should happen tomorrow)
So yeah, this is "my thought" about Microsoft for the Next week, To the Next Sunday, have fun.