Technical Analysis – Microsoft stock climbs above SMAs; suggest further gains
July 10, 2018 1:26 pm
Microsoft stock prices have been making higher highs and higher lows since the end of September 2017 when it touched the 73.00 psychological level in the medium-term. The technical indicators, continue to send bullish signals, suggesting that the strength in the market is not over yet.
Technically, in the daily timeframe, the price has successfully surpassed the 20- and 40-simple moving averages (SMAs) last week increasing the chances for a new high in the near-term. The RSI indicator is rising in the positive territory with strong momentum, while the %K line of the stochastic oscillator entered the overbought zone.
If the market pushes the price higher, the next immediate resistance would come from the 102.50 barrier, which acted as a key level in the past. In case of an upward violation of the aforementioned obstacle, it could drive the bulls towards the next handle of 103.00 and then at 104.00.
Should prices decline and the stock drops below the SMAs, the 97.20 level could offer nearby support ahead of the 23.6% Fibonacci retracement level of the upleg from 73.00 to 102.50, around 95.54. Then a leg below that level, the price could shift the bullish outlook to bearish as there would be a penetration of the ascending trend line.
In the medium-term, the outlook remains positive since prices are holding above all the moving average lines and the rising trend line.
Microsoft stock prices have been making higher highs and higher lows since the end of September 2017 when it touched the 73.00 psychological level in the medium-term. The technical indicators, continue to send bullish signals, suggesting that the strength in the market is not over yet.
Technically, in the daily timeframe, the price has successfully surpassed the 20- and 40-simple moving averages (SMAs) last week increasing the chances for a new high in the near-term. The RSI indicator is rising in the positive territory with strong momentum, while the %K line of the stochastic oscillator entered the overbought zone.
If the market pushes the price higher, the next immediate resistance would come from the 102.50 barrier, which acted as a key level in the past. In case of an upward violation of the aforementioned obstacle, it could drive the bulls towards the next handle of 103.00 and then at 104.00.
Should prices decline and the stock drops below the SMAs, the 97.20 level could offer nearby support ahead of the 23.6% Fibonacci retracement level of the upleg from 73.00 to 102.50, around 95.54. Then a leg below that level, the price could shift the bullish outlook to bearish as there would be a penetration of the ascending trend line.
In the medium-term, the outlook remains positive since prices are holding above all the moving average lines and the rising trend line.
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