Extended markets ran into resistance where expected this week, within the Sept. S&P 2810-2820 (S...
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
Ten industrial companies reported through the close of July 18, with all beating EPS and sales estim...
The bottom line is we are very near a major new infrastructure cycle. Although self-driving cars are...
The energy sector is getting a lot of attention lately as a safe haven that is benefiting from recor...