I see Microsoft (MSFT) may buy back 20-50 billion dollars worth of its stock. It was mentioned in Barrons so it isn’t a totally wild rumor. I have no idea if it will happen and how this will affect the company and stock if it does? That’s not my gig. But I can take a look at the chart and see how it has been progressing (or regressing… depending on your perspective).
Chart courtesy of Stockcharts.com
The longer term chart (not shown) shows a big falloff from 2000 and little change from 2002 to 2006. The range square from 2006-2007 is the first significant and measurable move since the 2000 drop.
It looks like five waves down from 2007 which usually will not lead to a big move up without at least a retest of the low after and a-b-c counter trend move up. It is interesting that price made a fake upward at exactly 50% of the time cycle. I don’t think price can move above the blue diagonal without a retest of the 75% price retrace and the low of the five waves down starting in 2007.
Tags: MSFT · Square of Range2 Comments
2 responses so far ↓
Andy
Looking to sell some msft. Can you give me a short term top guess ?
Robert - short term there is the 1:1 descending angle (red), the 50% price retrace near $29, and the 1:1 ascending angle (blue) that will serve as some level of resistance. MSFT kinda looks strong to me in the short term and maybe you want to use a trailing stop from here. That is just a guess. There are lots of reasons to sell and if you have a good one then maybe the open tomorrow is the best time.