MSFT has miraculously just broken bullish out of a bearish ascending channel pattern. If the red trendline of resistance-now-flipped into support can hold, look for fireworks as your first target may be around the $295 area. Only about a 6% gain but it could move there in a hurry and that would be just getting the party started.
This could be a very bullish occurrence for the asset as NVDA some time ago did a similar move by breaking bullish out of the same bearish ascending channel pattern. The move for NVDA resulted in a 27% gain. Keep your eyes on this one.
This could be a very bullish occurrence for the asset as NVDA some time ago did a similar move by breaking bullish out of the same bearish ascending channel pattern. The move for NVDA resulted in a 27% gain. Keep your eyes on this one.
Comment:
Another update after getting an indecisive weekly candle close. We witnessed price close above the bearish resistance line for one day before breaking back below it to close the week.
There is support from an uptrend holding the price up at approximately $275. From a bear standpoint this will be the price that needs to be broken in order for a low risk short opportunity to present itself.
As for the bullish scenario we are still waiting for a confirmation close above the trendline. If this happens a great long opportunity could be on the horizon. The close on Friday was strong and this asset has been a stubborn one for bears the previous 2 times it met this resistance.
Remain patient, and wait on confirmation before assuming anything just yet on Microsoft.
There is support from an uptrend holding the price up at approximately $275. From a bear standpoint this will be the price that needs to be broken in order for a low risk short opportunity to present itself.
As for the bullish scenario we are still waiting for a confirmation close above the trendline. If this happens a great long opportunity could be on the horizon. The close on Friday was strong and this asset has been a stubborn one for bears the previous 2 times it met this resistance.
Remain patient, and wait on confirmation before assuming anything just yet on Microsoft.
Comment:
An update on this has been made. Please see related ideas below.
The daily and weekly RSI's have broken out fresh into overbought territory for the first time since August of last year. This historically on its chart has been a very bullish signal. The last two times this happened we saw a 30% run up the first time and a 25% run up the second time. This is not an indicator to ignore.
Also, MSFT is holding strong despite the expected resistance we saw at the opening of the new week today as bulls managed to close the price near the candle open.
The signal to watch as usual will be on the weekly candle close. We are currently underneath the red resistance again, so it is ill-advised to be trying to long on the daily.
Bulls will need to put together a flush green candle this week in order to confirm any kind of breakout.
This means the bias is bearish, but with the RSI in irrational and historically bullish territory, MSFT is worth continuing to keep on your radar IF a breakout is to confirm on the weekly candle close Friday.