Mr. Softy is back! Microsoft has looked good for a couple of years now, but the recent action is quite constructive. Based on what I’m seeing in the chart, there could be more upside to come. Money flow has remained positive, turnover has been solid and option call buying has been decent.
The recent pullback took the stock down about 9%, but it has bounced back smartly. There is no catalyst like a solid earnings report to stoke the buyers. It appears the stock has institutional support – and those are the names we gravitate towards.
Since the breakout in early October, this stock has barely budged. It is currently knocking on the door of $100 per share. I think it’ll hit this mark quite soon, but even if there is a modest pullback that would be a great chance to get on board.
Microsoft (Nasdaq: MSFT) Video Chart Analysis
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Microsoft Corporation develops, licenses, and supports software products, services, and devices worldwide. The company’s Productivity and Business Processes segment offers Office 365 commercial products and services for businesses, including Office, Exchange, SharePoint, Skype for Business, and related Client Access Licenses (CALs); Office 365 consumer services, such as Skype, Outlook.com, and OneDrive; Dynamics business solutions, such as financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and mid-size businesses, large organizations, and divisions of enterprises; and LinkedIn online professional network. Its Intelligent Cloud segment licenses server products and cloud services, such as Microsoft SQL Server, Windows Server, Visual Studio, System Center, and related CALs, as well as Azure, a cloud platform; and enterprise services, such as Premier Support and Microsoft Consulting that assist in developing, deploying, and managing Microsoft server and desktop solutions, as well as provide training and certification to developers and IT professionals on Microsoft products. The company’s More Personal Computing segment comprises Windows OEM, volume, and other non-volume licensing of the Windows operating system; patent licensing, Windows Internet of Things.