Bounce setup for MSFT
"Technology" sector and "Software - Infrastructure" industry is currently on a strong uptrend.
Historical prices of Microsoftfavors the 100 Moving aAverage. A bullish bounce can be expected
Technical Analysis:
- Multiple price rejection are spotted on 100EMA historically
- The oscillator stochastic is currently oversold with the price supported by Moving Averages as support
- Momentum of relative strength has been consistently strong
- Multiple clear Higher Low have been formed
The only concern from the Technical standpoint would be the resistance around $225. Prices have been struggling to break that resistance.
However, Microsoft is a fundamentally strong company and is the most widely used OS.
I believe if prices do break above the resistance and form a support level there shouldn't be a problem to take a long-term approach.
For this scenario, I will split into two positions:
1 would be for a short term trade with the TL & SL on the chart
2 a longer-term trade while monitoring the trend structure
"Technology" sector and "Software - Infrastructure" industry is currently on a strong uptrend.
Historical prices of Microsoftfavors the 100 Moving aAverage. A bullish bounce can be expected
Technical Analysis:
- Multiple price rejection are spotted on 100EMA historically
- The oscillator stochastic is currently oversold with the price supported by Moving Averages as support
- Momentum of relative strength has been consistently strong
- Multiple clear Higher Low have been formed
The only concern from the Technical standpoint would be the resistance around $225. Prices have been struggling to break that resistance.
However, Microsoft is a fundamentally strong company and is the most widely used OS.
I believe if prices do break above the resistance and form a support level there shouldn't be a problem to take a long-term approach.
For this scenario, I will split into two positions:
1 would be for a short term trade with the TL & SL on the chart
2 a longer-term trade while monitoring the trend structure
Trade closed: target reached:
Happy Profits!