From Corey Rosenbloom: Software giant Microsoft Corporation (NASDAQ:MSFT) continue to be a “strong stock getting stronger” as evidenced by yesterday’s new high.
Let’s chart this bullish candidate and plan key levels on which to focus for any trades:
On the Daily Chart, we can see short-term pivot support/resistance levels at $56.00 and $58.00.
We’re also seeing a new short-term resistance level at $61.00 but if price holds above this level, it could easily develop into a similar future support shelf.
For now, we’re watching the small V-Spike Bullish Reversal in November that propelled price to the new high.
If we pull the perspective back to the weekly chart, the bullish uptrend becomes clearer:
We see additional larger-timeframe price pivot points and they include $40.00, $49.00, and again $56.00.
Note how price rallied higher, found resistance, developed a range, and then broke through to new highs.
We’re in a pro-trend bullish impulse period where shares haven’t yet reached their new resistance high – most likely.
As such, focus on the Daily Chart levels in this strongly uptrending stock and expect higher prices ahead if price remains above $60.00.
Microsoft shares fell $0.30 (-0.49%) to $60.79 in Wednesday morning trading. Year-to-date, MSFT has gained 9.53%, putting it slightly ahead of the benchmark S&P 500’s return during the same time period.
This article is brought to you courtesy of AfraidToTrade.com.