MSFT setup now forming, here’s details
Andy Swan created and
co-founded Daytrade Team Service five years ago on a principle of empowering
individual stock and options traders with the techniques and analysis methods
typically reserved for elite professionals. His expertise in technical
analysis and commitment to educating members earned DaytradeTeam a top-ranking
among advisory services for several years.
Microsoft has finally taken the
gloves off. A renewed energy has apparently swept through the
company, and through Wall Street. A plan to destroy Google is in the works,
they are entering the supercomputer market, and their XBOX 360 unit is likely
to be one of the “must have” gifts for Christmas this year as it beats Sony’s
Playstation 3 to the shelves.
Even better, the stock is looking very strong, nearing three-year highs and
continuing one of the more “stealth” uptrends I’ve ever seen. Take a look at
the three-year chart of MSFT to see what I mean:
Notice how MSFT has moved steadily (and yes, very very slowly) higher over the
last few years, making higher lows throughout the period and putting some very
impressive high-volume rallies together in the process. Currently, MSFT is
running right up against its three-year high on a month-long rally
(highlighted in yellow) that is both impressive and unsustainable at the same
time.
A pullback in MSFT is almost certain here, and that is exactly what we want to
see. My Swing Trading and Options Trading Systems will be watching very
closely for low-volume pullbacks over the next month to enter bullish
positions on.
After all, what could be better than a company with a renewed “start-up”
spirit, a genius staff, an uptrending chart and 40 billion dollars in the
bank?
Andy Swan