Recently, the market rally has been led predominantly by tech names. Microsoft (MSFT) added its name to the New Highs file today. With Facebook, Alphabet, and Microsoft adding their names to the list recently, it is easy to see why the Technology sector has been one of the top performing sectors.
Microsoft has been range bound for the last two months, which looks like institutional accumulation by trading in a tight range with no breakout or breakdown. All the technical indicators line up for this to be just the start of a move for Microsoft. If the broader market can continue higher, this leader might really move. Since Satya Nadella starting driving this bus in 2014, it has been a big growth stock. Maybe Steve Ballmer was the setup man, but Microsoft continues to perform well under Nadella.
The trend has not been smooth but this looks like a nice breakout.
Good trading,
Greg Schnell, CMT, MFTA
