MICROSOFT CORP is setting up nicely for a breakout.

We've identified MICROSOFT CORP (NASDAQ:MSFT) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NASDAQ:MSFT for further developments.

What is the technical picture of NASDAQ:MSFT telling us.

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Overall MSFT gets a technical rating of 8 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, MSFT is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that MSFT is one of the better performing stocks in the market, outperforming 87% of all stocks. We also observe that the gains produced by MSFT over the past year are nicely spread over this period.
• MSFT is part of the Software industry. There are 282 other stocks in this industry. MSFT outperforms 76% of them.
• MSFT is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so MSFT is performing more or less in line with the market.
• In the last month MSFT has a been trading in the 311.55 - 338.42 range, which is quite wide. It is currently trading near the high of this range.

Check the latest full technical report of MSFT for a complete technical analysis.

How do we evaluate the setup for NASDAQ:MSFT?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:MSFT is 8:

MSFT has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 343.11. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 331.39, a Stop Loss order could be placed below this zone.

How to trade NASDAQ:MSFT?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.