MSFT Possible buy ideaMicrosoft, technology services giant, is making a perfect long entry possibility on its weekly chart.
What to have on mind when watching the stock:
1. On Daily time frame, we had a perfect 50EMA retest. Stock managed to retake it and to even break above the smaller moving averages, the 10 and 21EMA.
2. This time frame is giving us a broad stop loss opportunity, once we enter the stock. To be precise, once the break of previous highs happen, my stop loss will be around the Daily 50EMA level, which is around $416.5 at the moment.
3. Back to weekly time frame and our entry point, my first entry would be once the price enters the Weekly channel, or it's previous high zone, sitting at around $430 price level. I will be monitoring the price and trading volume once this happens, I would like to see larger than usual trading volume.
4. My second entry and adding to the position, of course, if the break happens, will occur once the price crosses the $435.7 price level, which is just above the highest point on which the price of MSFT went.
Of course, this is just my opinion. I will try to give my best to update the idea as it develops. Thanks for liking and following me!
