MICROSOFT CORP is showing promising signs of setting up for a breakout.

Our stock screener has detected a potential breakout setup on MICROSOFT CORP (NASDAQ:MSFT). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NASDAQ:MSFT.

Technical Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Taking everything into account, MSFT scores 9 out of 10 in our technical rating. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• When comparing the yearly performance of all stocks, we notice that MSFT is one of the better performing stocks in the market, outperforming 89% of all stocks. On top of that, MSFT also shows a nice and consistent pattern of rising prices.
• MSFT is part of the Software industry. There are 279 other stocks in this industry. MSFT outperforms 76% of them.
• MSFT is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month MSFT has a been trading in a tight range between 397.22 and 420.82.

Our latest full technical report of MSFT contains the most current technical analsysis.

Why is NASDAQ:MSFT a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:MSFT has a 8 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, MSFT also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 420.56. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 402.55, a Stop Loss order could be placed below this zone.

How can NASDAQ:MSFT be traded?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

More breakout setups can be found in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.