Technical Pulse: Microsoft Corp September 19, 2022 466

 

Microsoft Corp (NASDAQ: MSFT) A potential bullish reversal to the upside as:   

 

  1. The bullish hammer candlestick formed on 16 September at the double bottom support area of 241.00-246.00 points towards a bullish upside.
  2. Bullish divergence was also observed where price made a lower high towards the support area while the Relative Strength Index (RSI) technical indicator made a higher high. This discrepancy points to a bullish upside as momentum is picking up despite the bearish price action.
  3. Price could reach the resistance level at 268.00 which is confluence of ichimoku cloud resistance at 267.85, a downtrend resistance line and 50% Fibonacci retracement level resistance, with the swing high of 294.18 and swing low of 242.06 as points of reference.

 

 

*Expected timeline of the trade is 13 weeks from the date of report issuance.

 

 

CHART LEGEND

 

Red box = Resistance zone

Green box = Support zone

Blue line = Conversion line

 

Red line = Base line

 

Green area = Ichimoku cloud

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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