Could Microsoft Make New Highs?

October 15, 2020
Posted by: Shane Daly
Categories: Stock Trading, Trading Article

I was scrolling through some of the stocks that I follow and Microsoft (MSFT) showed an interesting pattern.

Like many stocks, there’s been a corrective phase taking place. After putting in lows in September, MSFT has started to make a pattern of higher highs and lows.

microsoft stock chart After the recent break higher with a gap, we need to see a pullback in order to get on board the potential upside move.

I have two zones of interest to start looking for an entry trigger:

$216.04
$210.80

If there were a trigger to enter a position, I would need to see $225.21 pushed through. Of course there is structure resistance at highs but longer term, would be a shot at $242.50.

Stop loss locations are dependant on the trader and their risk protocols but just below the price turn, when it occurs, is an obvious location.

What Are Price Target Goals?

These are areas I am looking at for overall profit objectives. These fit into the more recent price action/structure as seen on the charts. As an example, BABA hit our target of $308.50 and began to retrace.

These won’t always be met which is why managing your positions is vital to protecting profits made.

Author: Shane Daly

Shane started on his trading career in 2005 and sought a more structured approach to his trading methodology. This lead becoming a Netpick's customer in 2008. His expertise lies in technical analysis, incorporating a macro overview for effective trade filtering. Shane's trading philosophy has been influenced by several prominent traders, contributing to his composed and methodical approach to market engagement. Initially focusing on day trading in the Forex market, Shane has since transitioned to a swing and position trading strategy across various markets, including stocks and futures. This shift has allowed him to optimize his time management without compromising his trading performance. By adopting longer-term trading horizons, Shane has successfully reduced his screen time while maintaining consistent returns.