Parabolic gains may soon change to pain for Microsoft investors. The rise and rise again of MSFT on this weekly chart has clearly been unsustainable for a while but sprinting on based on pure momentum. Once this momentum starts to fade, sanity will return. Sharp falls in MSFT may follow.
The break of the trend line will give strong sell signal, but since it...
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.
If you look at this chart on a weekly or monthly time scale and look at the RSI, there is bearish divergence on both timescales which warns of a MAJOR reversal ahead to the down side. A longer term trader / investor could add a short position in MSFT to their portfolio. (This is not financial advice, you are responsible for your own losses).
This is for the stock traders, maybe a possible down trend on Microsoft however with it being a company in the technology sector i would be careful as a new product or software could significantly change this.
The Microsoft MSFT stock price is in an ascending channel, and is very near the bottom of it today. I expect to see a reversal occur and the price to start rising until it reaches the top of the price channel. This is supported by RSI levels.
Please hit like if you agree.
This is a quick description as how I use STOCH and the RSI2 to help me find key pullbacks in a trending market.
Throughout trending markets we expect to see healthy pull backs. This happens as people rotate out of certain stocks/sectors, price drops and this gives us a great opportunity to enter the stock at a discounted price.
If we take $MSFT as an example we...