Microsoft (MSFT) has enjoyed a tremendous performance in 2014. In fact, this has been one of its best years since the dot.com days – the stock is up nearly 35% YTD. That’s a stunning amount for a mega cap company, but more so since the stock has been on a buy signal nearly all year. Every dip has been minor (and offered a great buy point). It only challenged the 100 ma once (just recently), but it passed the test and moved sharply higher.
The impressive note on this stock is its relative strength. When the markets swoon, Microsoft goes down but not nearly as much as the rest of the market. That shows strength, power and interest from institutions. Its sharp 20% rally off the mid-October lows was on strong turnover, and now we see a nice handle shaping up for a classic cup/handle formation. The Microsoft chart appears ready to move up towards its recent highs near $50.
