MSFT, Flag Confirmed As Mentioned, Next Steps At The Horizon!

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Hello Traders Investors And Community, welcome to this update-analysis where we are looking at recent events, the current price-structure-formation, and what we can expect from MSFT currently the second-largest stock from the market capitalization aspect. As I mentioned in previous analysis MSFT was forming a possible bull-flag which then confirmed rightfully to the upside and reached its first bull-flag-target I pointed out it will reach when confirmed if you did not saw this analysis already I highly recommend that you watch it when going to my account. Overall there are some interesting signals and signs I detected in the chart which are important to look at and can determine the further outcome of MSFT sustainable therefore we are looking at the 4-hour chart. As the corona cases increasing again this can indicate new supply and bearishness entering the market therefore a smaller when not bigger pull-back also in MSFT is not far from sight as the major market begins to struggle we have to examine if important support levels keep holding or bigger bearish pullbacks awaiting in destiny.

Initial Analysis According The Subject with MSFT (4-Hour Timeframe):

As you can eliminate when looking at my chart now is that the stock is trading clearly above the previously established all-time-high-condition and formed some new higher highs in the structure which are building a rising resistance line that you can see marked in blue within my chart. This resistance line serves as strong resistance as the stock already bounced to the downside several times there which is marked in my chart, therefore, this third touch of the line will highly likely provide a pull-back which will end in the minimum a correction when not a bigger pull-back and bearishness. The next important support when this more possible scenario plays out is the previously established support/resistance level at 198 which you can see marked with the black line in my chart that level was also the first bull-flag target which reached now.

When the stock plays out the scenario properly and visits the suspected support level it is from high importance for the further development of bullishness that it confirms this level as support and forms a solid and substantial support base there, otherwise when this does not happen and the stock shows more bearish pressure the further uptrend is in danger, this can confirm together with the possible incoming bearish pressure we have in the main market showing in the major indices like the S&P or the RUSSELL. Therefore we should keep in mind that a clear break of 182.5 will invalidate and inactivate the further bull-flag scenario which can cause more bearish signs and alteration of the dynamic otherwise when the stock holds the level and manages to move higher we can expect it to reach the further bull-flag targets which are far above.

In comparison with the main market, we have this stock as a clear winner from the corona-crisis where we have others which are clearly bearish and showing up bearish formations which are likely to confirm bearish to the downside. As this stock reached all-time-highs, where many stocks are away from it, is stronger than the market but we should remember that this can change especially when corona fears increase again and new bearish fears entering the market which can drag the price down similarly to the scenarios we have seen in March this year where everything fell to the downside, therefore we should be prepared and keep the downside also in mind to not get surprised when it will develop to wage opportunities and possibilities and take the appropriate action in each individual case, this means we need to trade what we see and not what we think as this and mere speculation happens too often these days. After the expect correction provided we will see how it is going further with this stock and if it can hold its established bullish growth or fall back below important support lines.

In this manner, thank you for watching, support for more market insight, have a great day and all the best to you!
Good luck is when opportunity meets preparation, while bad luck is when lack of preparation meets reality.

Information provided is only educational and should not be used to take action in the markets.

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تعليق

ANALYSIS UPDATE: MSFT continued with the massive channel breakout and volatility determinations to finally bounce in the range.

Since then, MSFT has shown up with huge continued volatilities to determine further price actions.