Thursday, September 18, 2014

Microsoft Corporation (NASDAQ: MSFT)

Microsoft Corporation develops, licenses, markets, and supports software, services, and devices worldwide. The company’s Devices and Consumer (D&C) Licensing segment licenses Windows operating system and related software; Microsoft Office for consumers; and Windows Phone operating system. Its Computing and Gaming Hardware segment provides Xbox gaming and entertainment consoles and accessories. The company’s Phone Hardware segment offers Lumia Smartphones and other non-Lumia phones. Its D&C Other segment provides Windows Store, Xbox Live transactions, and Windows Phone Store; search advertising; display advertising; Office 365 Home and Office 365 Personal. The company’s Commercial Licensing segments licenses server products, including Windows Server, Microsoft and related Client Access Licenses; Windows operating system; Microsoft Office for business; and Skype. Its Commercial Other segment offers enterprise services, including premier support services and Microsoft consulting services; commercial cloud comprising Office 365 Commercial and other Microsoft Office online offerings.
Take a look at the 1-year chart of Microsoft (Nasdaq: MSFT) below with my added notations:
1-year chart of Microsoft (NASDAQ: MSFT)
MSFT has been trending consistently higher for the entire last year, and during the last 8 months, the stock has also formed a clear trendline of support (green). In addition, the stock had also created at 52-week high resistance level at $45.50 (blue) in July and August. At some point MSFT was going to have to break one of those two levels, and late last week the stock broke through resistance to a new high.

The Tale of the Tape: MSFT broke though its $45.50 resistance, which was also a new 52-week high. A long trade could be made on a pullback down to the $45.50 level with a stop placed below that level. A break back below $45.50 should lead to a fall down to the trendline support., which is currently approaching $44.
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