Don't Ignore This Chart!

Microsoft Readies A Test For A New High

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Microsoft (MSFT) is currently up near the previous highs. This comes after a great rally to start the year. As a technician, I consider a previous high as resistance. As the next few weeks progress, it will be important to watch the charts of the strongest software companies out there  in my opinion. I want to see if investors are willing to pay more than ever before. Microsoft is one of those anchor tenants since the arrival of Satya Nadella. 

This chart looks great. The chart has everything pointing the right direction. The quiet volume is a small worry. 100 million shares weekly was the level throughout last summer so the current volume looks normal to me. The stock is breaking out to new relative strength highs shown on the purple area chart. 

So far, it all looks healthy but the previous high makes this an important chart.

Good trading,
Greg Schnell, CMT, MFTA

 

Announcement from the Author

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined StockCharts.com in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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