Blueroot

Apr 26, 2019 9:57 AM

Microsoft after earnings, shall we go short? Short

Microsoft CorporationNASDAQ

Description

⋅ Apr 26, 2019 9:57 AM

The price broke both the 2DS and 3DS Bollinger bands, is this area (after 3DS) the price stays for less than 2% of the time. This may suggest that the price could tend to come back to the median (121$ at the moment) and "release some stress". The RSI is also over 80, well inside the overbought zone, which also indicates a possible reversal of the trend. The title is at an all time high, changes are that we could see a retracement. Strategy for STOCK TRADERS For these reasons, I would suggest selling the stock with a Stop Loss @ 130-135 (depending on your risk appetite) and a TP @ 115, level of support - resistance in previous trading sessions (Having the 135-115 would give you a 2.22 R/R). Strategy for OPTION TRADERS If you are an option seller, I would sell a 135 Call. If you want to cover it, buy a 140-145 Call. If you want to make a short strangle, do the sell 135 Call and sell 115 Put. If you want to make an short Iron Condor; do 135-140 and 115-110.

Trend Analysis Technical Indicators microsoft Microsoft (MSFT)