In-Depth Technical Analysis of MICROSOFT CORP.

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.

Overall MSFT gets a technical rating of 9 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.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, MSFT did better than 78% of all other 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 277 other stocks in this industry. MSFT outperforms 72% 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 the 388.03 - 425.42 range, which is quite wide. It is currently trading near the high of this range.

For an up to date full technical analysis you can check the technical report of MSFT

How does the Setup look for NASDAQ:MSFT

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:MSFT currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

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 420.55. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 415.50, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How can NASDAQ:MSFT be traded?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

More breakout setups can be found in our Breakout screener.

Keep in mind

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.