$Microsoft(MSFT)$
What makes this week's MSFT candle bullish:
- Bullish engulfing structure: This week's candle fully engulfs last week's body, reversing the prior downtrend.
- Long lower wick: MSFT flushed to $349.20 (new 52-week low) but buyers stepped in aggressively. Long lower wicks confirm demand zones.
- Strong close near highs: MSFT closed at $372.97, very close to the weekly high of $376.61, showing sustained buying pressure.
- +5.7% weekly gain: A large green candle after a multi-week selloff often marks a momentum shift.
Technical implications:
- The weekly candle suggests buyers defended the $350 zone, aligning with the earlier thesis about a potential double-bottom structure forming in the $360–$368 region.
- A bullish weekly candle after a 52-week low break often signals:
- Exhaustion of sellers
- Short-covering
- Institutional dip-buying
- If MSFT holds above $370, the next weekly pivot is the $395–$410 band, which is critical for trend definition.
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