Technical Setup: MICROSOFT CORP Appears Poised for a Breakout.

Our stock screener has spotted MICROSOFT CORP (NASDAQ:MSFT) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:MSFT.

Technical analysis of NASDAQ:MSFT

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Taking everything into account, MSFT scores 8 out of 10 in our technical rating. MSFT has been one of the better performers in the overall market. Some doubts were observed in the medium time frame, but recent action was again very positive.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that MSFT is one of the better performing stocks in the market, outperforming 89% of all stocks. We also observe that the gains produced by MSFT over the past year are nicely spread over this period.
• MSFT is part of the Software industry. There are 280 other stocks in this industry. MSFT outperforms 78% of them.
• MSFT is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so MSFT slightly outperforms the market at the moment.
• In the last month MSFT has a been trading in the 309.45 - 336.14 range, which is quite wide. It is currently trading near the high of this range.

Our latest full technical report of MSFT contains the most current technical analsysis.

How does the Setup look for NASDAQ:MSFT

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:MSFT scores a 8 out of 10:

Besides having an excellent technical rating, MSFT also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 329.10, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NASDAQ:MSFT?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Of course, there are many ways to trade or not trade NASDAQ:MSFT and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.