Microsoft Might Have Done This Before

BATS:MSFT   Microsoft Corp.
Microsoft has been rallying since October, and now a recurring pattern may be present again.

This chart highlights bullish breakouts by the software giant in October and January.

First you have tight consolidation against support. MSFT first held the October 13 closing price of $327.73, followed by the December 4 closing price of $369.14.

In both cases falling trend lines appeared along the closing highs. Notice how MSFT rallied after breaking those short-term resistance patterns.

Next, the lower study includes our 2 MA Ratio custom script. It plots the ratio of the 8-day exponential moving average (EMA) versus the 21-day EMA. Consider how the ratios turned positive before each advance.

Fast forward to March 2024 and similarities are potentially visible. MSFT has mostly remained above the February 20 close of $402.79 and prices are back above a falling trendline. The ratio of the 8-day and 21-day EMAs is also turning up.

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