📊 Microsoft Corp. New All-Time High (Bearish Signals)Let's start by looking at the weekly timeframe chart...
➖ An ATH was hit in July but the candle in which the ATH hit closed red and this preceded a correction.
➖ A new All-Time High hit last month with the candle again closing red, which opens the door for a new but stronger correction. These are early signals.
➖ The weekly RSI is showing a 2 year strong bearish divergence, it peaked November 2021 while the stock peaked November 2023.
➖ On the daily timeframe MSFT still trades above EMA10 but a recent bearish candlestick pattern showed up after the new ATH.
➖ We have really high buy volume 15-Dec but prices failed to move higher, a sign of weakness.
There is potential for a drop.
Additional confirmation is needed, is still very early but the bullish trend is losing momentum.
Namaste.
MSFTC trade ideas
🚀 Microsoft Analysis: Anticipated Upward Trajector 📈In my analysis of Microsoft, the recent attainment of a new All-Time High at $385 signifies the culmination of either Wave A or Wave (iii). Currently navigating a subordinate ABC correction, a Zigzag correction, we're on the verge of completing Wave (iv) within the 38.2% to 61.8% Fibonacci levels. Anticipating an overarching Wave 5, I foresee a significant rise to approximately $450. This sets the stage with a promising Chances-to-Risk ratio of 4.3. My conviction remains strong in the imminent downturn, followed by a subsequent upward trajectory, potentially shadowed by another sell-off. These projections extend into the future, likely until mid-2024. 🚀
MSFT: Testing Multi-Year Bearish DivergenceNASDAQ:MSFT is currently testing a multi-year bearish divergence that has built-up on the RSI.
If price continues to decline from here, a failure to break above the RSI resistance will be confirmed. NASDAQ:MSFT is unlikely to make any meaningful momentum upwards until this resistance is broken.
We see similar divergences on other major tickers:
NASDAQ:AAPL :
NASDAQ:AMZN :
Could this be a warning sign for the broader markets as they near ATHs?
MSFT: Double-Top, or Bull Flag Breakout?NASDAQ:MSFT is showing a mixture of bullish and bearish signals; however, the most concerning of which is an active rug pull event which kicked off on March 16, 2023 at $265.20 via the 2D timeframe:
This coincides with a large RSI divergence event occurring on the larger timeframes; highlighting the potential for a double-top:
That being said, there appears to also be a major bull flag forming on the larger timeframes:
If we dive a bit deeper into the smaller timeframes and analyze the bull flag, we see another active rug pull at $345. This signals a high likelihood NASDAQ:MSFT will hit $345 in the near future:
With a high degree of both bullish and bearish signals, it can be hard to discern where NASDAQ:MSFT might be headed next.
We are keeping a very close eye on the AVWAP derived from the March 16 event as a guiding factor. Should the price significantly break below this level, we expect further drawdown to $265 will occur.
Why Microsoft?Reasons why I am buying Microsoft:
Fundamentals :
Three quarters of growth in earnings and sales y/y. Three year earnings per share growth is 22%. The outlook and forward guidance for 2024 and 2025 are positive.
Technicals :
wicked daddy pbs
TK cross flip Flop
1st pullback of new trend
Morning Star+Engulfing candle
38% Fib
large cup w/ handle pattern
uV1 volume
May add a little bit more October 25th, 2023 (tomorrow).
Calling the $MSFT top here. See you sub $200The popular narrative is that NASDAQ:MSFT is going to benefit from AI and if there's a downturn, the stock will hold up.
I have a different view. I think we've topped here and will only see lower prices going forward.
Over the next year, I anticipate NASDAQ:MSFT 's price dropping sub $200 to the support levels on the chart.
Only thing that would change my bias is a push above the resistance line and flipping it as support.
Let's see how it plays out.
MSFT headed previous swing highs?NASDAQ:MSFT pullback and consolidation seems to be over and breaking out to the upside. Targeting towards the previous swing highs around $385 area and possibly to a new all-time high after that? IF prices manage to breakthrough the previous swing highs. I'd say possibility is high.
These are my views and analysis and is only used for educational purposes. I am not a financial advisor.
Nothing in the information posted here is intended to be or should be interpreted as trading advice.
Possible scenario of FIB 50%.Here's one of many possible scenarios that could unfold. If the price creates a correction of a size similar to the current one, as marked by the blue rectangle, it will simultaneously be a FIB 50% retracement, a touch of the trend line, and perhaps even a dynamic support of the moving average cloud. Then, in turn, the opportunity to enter a LONG position will be quite nice.
Microsoft Is About To Correct; Time To TrimMicrosoft is in a really weak technical position right now. After breaking out of it's previous flagging pattern, the stock's ADX has since topped out, and we're seeing the beginnings of a bear trend for shares in the stock.
While the stock has come in somewhat and is no longer as overbought as it was last Wednesday, we still think there's downside room:
It's true that the company continues to grow revenue and profit, but the company has stopped buying back shares in the open market, and the stock is trading at a relatively expensive valuation, now above 12x sales:
The company has room to the downside, especially when combined with a broader technical environment which looks to be a little too strong. We're not blind to the possibility of a further Santa rally, but it doesn't seem like MSFT has as much gas left in the tank as some of the laggards of 2023 which are still waiting to catch a bid, like NYSE:UNH and NYSE:HD
Cheers!
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Shorting Opportunity for MSFT Based on Historical resistance Traders should consider watching MSFT for a trend reversal opportunity should historical resistance levels hold. Currently, trend reversal opportunity is indicated by Kalman filter crossover as MSFT hits a historical resistance level. Should resistance hold, we can expect MSFT to drop down to between 325 and 350 price targets.