MSFT: Top Signal Below Resistance?

przedwczorajLooking at MSFT's daily chart, the price action shows a strong upward movement recently, breaking above the key resistance level at $426.79 and reaching the next resistance at $441.48. The 21-day EMA is currently trending upward, supporting the bullish momentum. However, the price is now pulling back slightly from the $441.48 resistance level, which might indicate short-term profit-taking or consolidation after the strong rally. A sustained breakout above $441.48 would indicate further bullish potential, but the price needs to stay above this key point to maintain this momentum. If the price materializes a top signal, the next support would likely come around $426.79, the previous resistance level, now support - Princciple of Polarity.

On the hourly chart, MSFT is moving within a well-defined ascending channel, with the price bouncing between the channel's support and resistance lines. The recent pullback from $441.48 suggests a minor correction within the channel, but as long as the price remains above the channel's lower boundary and the 21-hour EMA, the uptrend remains intact.

Overall, MSFT is in a bullish structure, but the immediate test will be how it reacts to the pullback from the $441.48 resistance. A breakout above this level would confirm continued strength, while a failure to hold the short-term support levels could signal further consolidation or correction.

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Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.

“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore

All the best,
Nathan.