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.
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:
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.