MSFT recently raised up to its past swing high at ~130.00, a particularly sensitive level for the price. Thanks to the negative sentiments of the market, the price failed to break this level and this resulted in the formation of a Double Top, Eve and Adam. The first top is more concentrated and it almost has a round shape in it while the other top is sharp and has an inverted V-shape. Throughout the formation, the volume's shape is dome. The breakout occurs if the price closes below the Confirmation level, 123.00, on the daily chart. Keep in mind that the uptrend is still well active and valid. So, I am going to be more patient with this one and wait for a bearish breakout of either the upward trendline or the Confirmation level. Noteworthy to mention that the second top was of the pattern formed with much weaker bullish momentum as it is indicated by AO.
For updates on this analysis, stay tuned...!
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Breakout is taking place. Be cautious about the underlying support level...
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As I noted, the price reacted positively to the underlying support level.