Monday, 3 September 2012

Microsoft to retest March highs

One of my alerts for this week was related to the price movement of MSFT.  This stock is testing very important resistance. Triple top at 31$ looks like it is time to be broken upwards. Breaking this resistance could signal a move higher towards 33-34$ after testing 32,50$ March highs.

The upward move looks impulsive after a double bottom at the area around 28$. The decline from 32,50$ is a 3 wave move, thus a corrective one. It could very well be just the first part of a bigger correction. This would make it more difficult for the stock to move above 32,50$ highs. However we should also take into consideration the scenario where the correction is over at 28$ and MSFT is heading higher within a new impulsive wave. 

For the short term, 30$ should not be broken if the stock is to retest 32,5$. First positive signal is enabled if the price moves above 31$.

Thank you for taking the time to read my post.

1 comment:

  1. you might want to check this program
    http://www.cognitum-research.com/en/wave-explorer

    ReplyDelete