$Microsoft(MSFT)$
In the daily bar chart of MSFT, below, I can see that the shares have weakened since a high made in July. The stock has been crisscrossing the 50-day moving average line. The rising 200-day moving average line intersects down around $302.
The On-Balance-Volume (OBV) line has been weak since the middle of July. The trend-following Moving Average Convergence Divergence (MACD) oscillator is just slightly above the zero line.
In the weekly Japanese candlestick chart of MSFT, below, I can see a number of upper shadows at the various peaks since July. All these upper shadows tell me that traders are rejecting the highs. The slope of the 40-week moving average line is positive.
The weekly OBV line has softened over the past four months and suggests that sellers of MSFT have been more aggressive than buyers. The MACD oscillator has been in a corrective mode since July.
In this daily Point and Figure chart of MSFT, below, I can see a potential downside price target in the $281 area.
In this second Point and Figure chart of MSFT, below, I used weekly price data. This suggests a possible target in the $257 area.
Bottom-line strategy: I have no special knowledge of what MSFT will tell shareholders this Tuesday evening but the charts have been correcting lower since the middle of July and I would say that the correction is not over yet.
Comments