Saturday, July 05, 2008

MSFT Update for 07.05.2008


I have been bearish on MSFT since February 2008, and my initial downside target of $27 - $28 has been achieved. The long term consolidation pattern that is evident on this timeframe suggests a much lower downside target is in sight.

Weekly chart shows increased selling pressure showing up last week. Price remains below all key moving averages, and also below the down trendline in place. No buy signal/pattern evident on this timeframe.

Daily chart shows price to be below all key moving averages on this timeframe. Current resistance is now at the $27 level. Look for possible consolidation before next leg down.

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