Microsoft May Be Moving AgainMicrosoft has been snoozing since the summer, but some traders may think the tech giant is ready to start moving again.
The first pattern on today’s chart is the pair of bullish gaps following quarterly results, which may reflect positive sentiment.
Second is the August 15 weekly close of $520.17. MSFT slipped under that line in the second half of August and spent all of September below it. Prices crossed the resistance yesterday. That could suggest a breakout has begun.
Third, Bollinger Band Width fell to its narrowest level since April 2024. Are prices set to expand following such compression?
Next, the stock has clawed back above its 50-day simple moving average. The 8-day exponential moving average (EMA) is also above the 21-day EMA and MACD is rising. Those signals may be consistent with bullish direction.
Finally, MSFT is an active underlier in the options market. (Its average daily volume of 296,000 contracts ranks 16th in the S&P 500, according to TradeStation data.) That could help traders take positions with calls and puts.
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