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Even though the Nasdaq Composite Index just closed last month at all-time highs, Microsoft can say the same!
The rally off the 2009 lows recently had MSFT hitting its 23% retracement level based upon the 2000 highs and 2009 lows. As it was nearing the 23% Fib level, it was also at the top of a rising channel. When MSFT hit this dual resistance, it stopped on a dime. Could have been an 800 pound resistance point? So far ti appears that way.
Of late MSFT has broken below rising channel support and was kissing the underside of resistance at (1) above. This is not a good price point for MSFT to fall in price. MSFT wants/needs to climb back into its rising channel ASAP.
MSFT could earn the name “Mr. Softee” for a different reason if weakness starts to develop here!
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