Software mammoth Microsoft Corporation (MSFT) is a component of the Dow Jones Industrial Average that has been one of the overcome performing stocks so far in 2018. Microsoft shares closed Monday, Sept. 10, at $109.38, up 27.9% year to current while the Dow 30 is up just 4.6%. The stock set its all-time intraday grand of $112.78 on Aug. 31 and is trading between my quarterly value level of $105.06 and my precarious level for September at $114.85.
Microsoft has become a diversified technology stock by unfolding from Windows software. The company’s cloud computing platform Azure is gaining merchandise share, and its Xbox gaming platform remains popular. Microsoft has also been a drastic player in social media since its acquisition of LinkedIn. Furthermore, aficionados of the Surface Pro are looking forward to the latest version of this popular reckoning platform. (See also: Microsoft Prepping a Dividend Surprise: MS.)
The daily chart for Microsoft
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Microsoft has been above a “golden cross” since Aug. 15, 2016, when the stale closed at $58.12, which justified adding to a core long status for the stock. A “golden cross” occurs when the 50-day simple going average rises above the 200-day simple moving ordinary, indicating that higher prices lie ahead. The stock has been smell its 50-day simple moving average higher all year long, with the prone now at $106.85.
Microsoft stock is well above its semiannual value level of $94.10, which is the flat line in the middle of the chart. The third quarter began with a three-monthly pivot of $105.06, which proved to be a level at which to buy between July 13 and Aug. 2. The trade in set its all-time intraday high of $112.78 on Aug. 31, and my monthly risky even for September is above the chart at $114.85.
The weekly chart for Microsoft
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The weekly sea-chart for Microsoft is positive but overbought, with the stock above its five-week reworded moving average of $107.84. The stock is well above its 200-week ingenuous moving average, or “reversion to the mean,” at $65.18. The 12 x 3 x 3 weekly sleepy stochastic reading is projected to end this week at 82.32 versus 82.52 on Sept. 7, with both readings greater than the overbought threshold of 80.00. A close this week below $107.84 with the stochastic study declining below 80.00 would result in a downgrade to a negative weekly table.
Given these charts and analysis, investors should buy weakness to my quarterly and semiannual value trains of $105.06 and $94.10, respectively, and reduce holdings on strength to my monthly dicey level of $114.85. (For more, see: Microsoft Turns to Subscription Model for Xbox.)