MSFT has formed a large double top, and might be starting a correction towards the support below.
It's interesting to note that the top happened at the highest low in the weekly chart, and that we have two 9 week modes in the chart, from the top.
If we were to cross the earnings support, the inside trendline, and the 9 week mode below, we could see a correction landing into the earnings support levels below, close to the 45 handle.
We can go short with stops above 55.43, either at a new low, or at a slight retracement approaching the 55 mark.
If we don't get a new high tomorrow, and the close remains under 55, we might good odds with this trade.
Refer to Tim West's publication for the fundamental outlook for this stock.
See related ideas.
Good luck if taking this trade,
Ivan Labrie.
It's interesting to note that the top happened at the highest low in the weekly chart, and that we have two 9 week modes in the chart, from the top.
If we were to cross the earnings support, the inside trendline, and the 9 week mode below, we could see a correction landing into the earnings support levels below, close to the 45 handle.
We can go short with stops above 55.43, either at a new low, or at a slight retracement approaching the 55 mark.
If we don't get a new high tomorrow, and the close remains under 55, we might good odds with this trade.
Refer to Tim West's publication for the fundamental outlook for this stock.
See related ideas.
Good luck if taking this trade,
Ivan Labrie.
Trade active
Comment:
Great daily close.
Comment:
We could be witneseeing a double top here. Let's see how it goes.
We might get a sharp decline next, fireing a time at mode downtrend signal.