I am still on alert for a larger pullback in the market. The larger picture suggests the SPX will li...
Two Ideas for Trading Microsoft (MSFT)
06/15/2010 12:01 am EST
Microsoft Corporation (MSFT) - This stock mirrors the recent price history of the broad stock market.
This chart is a study of the current market condition with a huge double top, a penetration of a significant support line at $28, and a recent history of high volume on down days and low volume on up days.
But its chart also shows a trading buy signal from the stochastic indicator, telling us that a rally to its recent support line (now resistance line) at $28 could occur before turning down again.
Traders may want to take speculative positions in call options now to capture a two-point trade, but they will want to put a stop-loss order just under $24.
Short sellers should be alert to a possible breakdown at $24 with a target of $22 or possibly even $20.
By Sam Collins of OptionsZone.com
Related Articles on STOCKS
Alexion Pharmaceuticals (ALXN) is a biopharmaceutical company that researches and manufactures treat...
Annaly Capital Management (NLY) is worth a close look right here. The company is the largest mortgag...
Richard Moroney selects stocks in part by a quantitative ranking system called Quadrix, which rates ...