MSFT gapped down into intermediate support @ 220 today (after another round of "bad" CPI report that spooked the markets) but immediately reversed to form a bullish engulfing candle on the daily chart (and a potential pin bar on weekly chart).
Bullish divergence can be seen on both the weekly and daily charts which gave more conviction to this current support @ 220 (medium term resistence turned support)
Granted that a bounce from an bullish divergence can be just a short term counter trend (in a bear market), this support at 220 is still significant unless it is breached to the downside.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
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Support is holding well so far leading into earnings. Good sign.. but for the conservative, wait for earnings to be out and if good, then start buying the dips!
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The recent sell down after earnings disappoint (slightly) was an opportunity to buy the dip. Despite the sell-off, a bullish divergence was apparent between price and RSI and the stock rebounded strongly last Friday with a bullish engulfing candle.