Microsoft Corp (NASDAQ: MSFT)
(Current Price: US$413.64) – TECHNICAL SELL
Sell price: US$413.64 Stop loss: US$428.00 (-3.47%)
Take profit 1: US$398.00 (+3.78%) Take profit 2: US$383.00 (+7.41%)
(1) & (2): Microsoft Corp broke down an uptrend channel it was trading in. This was confluent with the price breaking below the recent US$418 support level, which provides a bearish signal.
(3): The Moving Average Convergence Divergence (MACD) & Relative Strength Index (RSI) technical indicators support the bearish view with bearish divergence and decreasing momentum.
We expect the price to pull back further towards Take profit level 1 at US$398.00 to retest a previous range consolidation support level in February 2024.
The price could then extend its bearish momentum towards Take profit level 2 at US$383.00 to retest a previous swing high resistance formed in November 2023.
Expected timeline of the trade is 1-8 weeks from the date of report issuance.
Our research team has a fundamental recommendation of “ACCUMULATE” with a target price of US$450.00
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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).
