Source: PaxForex Premium Analytics Portal, Technical Insight
After a short pause, technical stocks are back in fashion. On Tuesday the Nasdaq index rose 0.3%, while the Dow Jones index fell 1.1% and the S & P 500 dropped 0.8%. This continued on Wednesday as well. Return to technology may lead to a high return on Microsoft stock options. Microsoft (MSFT) closed at a new 52-week high on Tuesday and continued on Wednesday. This had a bullish look along with market changes. The critical support is around $175, which coincides with the rise of the 50-day moving average. There is also strong support for Microsoft shares at $186.
Microsoft, H4
Pivot: 196.71
Analysis:
Provided that the asset is traded above 195.40, follow the recommendations below:
- The time frame: H4
- Recommendation: long position
- Entry point: 196.71
- Take Profit 1: 199.70
- Take Profit 2: 200.40
Alternative scenario:
In case of breakdown of the level 195.40, follow the recommendations below:
- The timeframe: H4
- Recommendation: short position
- Entry point: 195.40
- Take Profit 1: 194.30
- Take Profit 2: 193.70
Comment:
RSI is traded above 70. This may mean that prices are either in a long uptrend or simply overbought, and therefore a correction may form (in this case, look for a bearish divergence). The MACD is positive and above the signal line. Configuration is positive. Microsoft trades above its 20 and 50-period moving averages (by 192.96 and 189.5 respectively).
Key levels:
| Resistance | Support |
| 201.00 | 162.00 |
| 200.40 | 160.00 |
| 199.70 | 158.10 |
Microsoft, D1
Pivot: 193.00
Analysis:
While the asset is traded above 182.00, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 193.00
- Take Profit 1: 200.00
- Take Profit 2: 208.00
Alternative scenario:
If the level 182.00 is broken-down, follow the recommendations below.
- Time frame: D1
- Recommendation: short position
- Entry point: 182.00
- Take Profit 1: 174.50
- Take Profit 2: 167.75
Comment:
RSI shows an uptrend.
Key levels:
| Resistance | Support |
| 225.00 | 182.00 |
| 208.00 | 174.50 |
| 200.00 | 167.75 |
We also advise you to pay attention to General Electric for intra-day trading:
Pivot: 6.51
Analysis:
While the asset is traded above 7.14, follow the recommendations below:
- Time frame: H4
- Recommendation: long position
- Entry point: 8.02
- Take Profit 1: 9.41
- Take Profit 2: 10.00
Alternative scenario:
If the level 7.14 is broken-down, follow the recommendations below.
- Time frame: H4
- Recommendation: short position
- Entry point: 7.14
- Take Profit 1: 6.18
- Take Profit 2: 5.60
